The Metals Review For the week of August 15, 2011 By Daniel Cronin Precious metals finally took a hit last week. Gold prices came off $80 from all time highs as the CME increased margin requirements 22%. I feel like this is the first week I am writing about gold being down as this markets has made a tremendous move this year. What also helped gold lower was the bounce back in equities especially at the end of the week. I believe Gold can bounce back this week as it is at a critical support level right now of $1,730. The Silver market just can't get over the $39-$40 range and I see this market hovering at $37-$38 this week. I would look to play OTM calls in the Gold market to try to take advantage of the price drop in recent days. The copper market has had a range of $3.81 to $4.06 in the last two weeks as the market has come down significantly with the equity markets. I see the same range this week as this market looks to consolidate around the $3.90 level as there is great support at $3.80. *chart courtesy Gecko Software’s Track n’ Trade Pro Past performance is not necessarily indicative of future results. Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.
