GOLD PUSHES ABOVE $950

by Joe Battaglia | July 20, 2009

Gold was up over $15 in early trading, pushing above the $950 resistance level. Gold moved up through that resistance in overnight activity and continued to hold on to the gains as we moved into the New York Market. The rise was largely related to a weaker dollar, which sank overnight. The dollar is down 51 basis points at 78.86. Silver also made a nice move to the upside, gaining $.30 to trade at $13.71 in the nearby futures contract. Oil is up $.48 at $64.04 a barrel. The Dow is also higher, gaining 78 points in early trading.

Gold is now developing upward chart momentum. We will continue to see some resistance between the $950 and $960 area. Once gold pushes through that, we should go up to $1,000 fairly quickly. This indicates that many of the forecasts for gold above $1,000 an ounce could prove to be accurate. Other commodities are also rising. Some of the increased long positions were taken up as a result of the private sector rescue of lender CIT. The government and the Fed are creating tremendous amounts of cash that has been pumped into failing companies. The cash is essentially being flushed down the drain. Clearly, there will be greater losses ahead as the commercial real estate markets are beginning to implode and credit derivatives that are involved with commercial real estate are likely to take another substantial hit.

Many traders are looking at the euro/dollar rate. Trading up through $1.42 will be another bullish indicator for the gold market. Another factor to watch is whether there is any follow-through buying that enters the market at these levels. From a technical point of view, there could be considerable follow-through buying if gold manages to hold well above the $950 level by the close.

Analysts at Scotia Mocatta told the Dow Jones Wire Service, "The $943 level continues to offer significant resistance as it represents the 38.2% retracement of the $865 to $990 bull move. If we can take out this $943 then the next true resistance is not seen until $990." Given that analysis and the fact that those levels were taken out, there is a good chance that gold will continue to move higher and challenge the $990 resistance level. However, time will tell and it is important for gold to make a decisive close above $950 before we can begin to look for that sort of activity.

At this point, gold continues to be a bargain buying opportunity. Investors should call Goldline at 1-877-341-2646 and ask for assistance in acquiring precious metal assets to properly diversify your portfolios. Ask them about Goldline's Price Guarantee Program, which may provide a helpful benefit to you. In addition, be sure to ask for a free copy of the American Advisor Newsletter, which is recently off the press. It may provide you with excellent insights into the market. For the first time, we have an article by Philip Klapwijk of GFMS where he is discussing China and its purchase of gold and the bullishness that this imparts to the market. There is also an article where Glenn Beck has a discussion with Mark Albarian, the President of Goldline. You will want to read these materials, as well as the various articles discussing the potential for a new global reserve currency and the devaluation of the U.S. dollar. All of this information will be extremely helpful to you. Call Goldline at 1-877-341-2646 to receive your free information package and your free copy of the American Advisor Newsletter. Ask how you can receive a free one-year subscription to the newsletter without any cost to you. You do not have to make a purchase to receive this free one-year subscription. Call Goldline at 1-877-341-2646.

Investors should ask Goldline to explain the features, benefits and cost structure of the various gold and silver investments that are available to you. Select those that best meet your own personal and individual investing needs and objectives. Investors looking for low transaction costs may wish to consider bullion assets such as American Eagles, Swiss 20 Francs, Krugerrands, Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these assets.

If you would like to take advantage of the Price Guarantee Program, which provides you with a two-week window of opportunity in which to re-price your order in the event of a correction, you must select assets with some collectible value such as 20 Francs, Double Eagles and Silver Dollars. Call Goldline at 1-877-341-2646 for further information on the Price Guarantee Program.

To receive the free information package including articles on the dollar, the economy and gold, call Goldline at 1-877-341-2646. Goldline also provides several other helpful articles. There are a number of other independent third-party source articles that you will find extremely helpful and informative. You will also receive the Client Account Agreement, a company brochure and a Coin Facts Risk Disclosure Booklet. Read these carefully before you make an investment. Call Goldline at 1-877-341-2646 now to receive your free information package.

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-877-376-2643.

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