Gold Silver Reports (GSR) – Gold Spot Next Week Move Up or Down? – Because of gold’s potential next week, Baruch said that he sees two strategies that could be potential winners. He added that the key is for investors to control their risks, which is why he prefers to play gold through the options market.
He added that he likes the idea of buying short-term calls or using an August call spread. He said that investors can find good value in buying August $1,320 calls and at the same time sell $1,350 calls.
He also likes buying July $1,320 calls to play the potential spike in gold following the Fed and ECB rate hikes.
“Through options, your risks are defined, but you have significant upside potential,” he said.
Phillip Streible, senior market analyst at RJO Futures, said that he is bullish on gold next week and could see prices pushing to $1,320 an ounce following the Fed meeting.
The Final Say…
While geopolitics and central bank meetings will be in the spotlight next week, there are other major economic events that investors need to focus on.
On Tuesday markets will receive important inflation data with the release of May’s Consumer Price Index. Rising inflation, while supportive for gold, could be detrimental as it will also support higher interest rates.
Read More : Trade Wars Need To Escalate To Support Gold
As the ECB holds its press conference following its monetary policy meeting, markets will then have to digest May retail sales data. This report will provide a glimpse as to how healthy the U.S. consumer is.
The week ends with the release of regional manufacturing data. – Neal Bhai Reports
