While a long list of bullish factors remain in place and the charts in gold are projecting even higher prices ahead, the magnitude and quick nature of the rally yesterday gives some pause to those thinking about "chasing the market with buys".

However, tensions between the US and Iran are still running very hot and have a track record of escalating before cooler heads prevail. Reports that the US actually had planes in the air for a strike before calling them back, clearly means the situation is set to remain in the front windshield of gold.

It would also appear as if the dollar trend has turned down and that should revive currency related buying interest in gold and that impact could be accentuated by fresh five year highs in gold which are likely to trigger long-term technical trading program buys.

Obviously the gold and silver markets are set to benefit further from the easing argument, and initial signs from India and Asia indicate that buyers are rushing into play despite the narrowing of discounts and significantly higher flat pricing than was present last month at this time.

In fact, August gold from last month has added roughly $125 an ounce with the most recent positioning report in gold showing a net long of 224,405 contracts the net long has probably spiked above 250,000 contracts. On the other hand, until the net spec and fund long approaches 300,000 contracts, we aren't ready to suggest the market is mostly bought out.

The bias is up but traders should expect a dramatic expansion of daily trading ranges and increased frequency of two-sided action.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.