Hi, I don’t recommend trading on a Friday and only leave trades open on a weekend if I am convinced that a trade technically and fundamentally can keep going AND I have at least 80 pips in profit to try and avoid a “gap” at the market open. This weekend more than ever I urge you to close all open trades.

There is the potential for some major gaps and spread widening at the market open (also make sure you cancel all forward orders as you could get filled dozens of pips away from your intended entry).

See the explanation from Global Prime below and a short video I made to reinforce why you need to close everything.

The good news? See the sperate post and video on how using Pierre’s Earth & Sky system on a 30 minute chart would have made you a lot of profit this week-  ideal for those of you who are currently in or just starting a period of “lockdown”


I explained yesterday why buying gold via a forex trade is a very bad idea at the moment:

What is the Best Way to Buy Gold?


Today and over the weekend things could get a whole lot worse!

Here is the explanation from our broker, Global Prime & check out the mega short video I made below their comments:

Dear Client,
Wishing you well. Please see below for an update regarding current volatility, liquidity and risks pertaining to FX and spot market gold (XAUUSD) particularly. The markets are experiencing volatile, unusual circumstances with increased risk of gap pricing/slippage and spread widening: please proceed with appropriate caution. Note: positions held over the weekend are exposed to Monday open price gaps.

Firstly, a press release excerpt from the Global Foreign Exchange Committee: “Given the intense volatility seen in global financial markets this month, it is possible that FX market participants may execute larger than usual FX volumes during end-of-month benchmark fixings. In addition, FX market participants may face more operational constraints reflecting lockdown in some financial centres. In light of these possible developments, significant volatility and price movements may be observed during FX fixings in the coming days.”

Reuters released an article detailing some of the underlying factors impacting spot gold currently: “Gold futures on Comex were trading around $1,640 an ounce at 1600 GMT while London spot metal cost around $1,605. The gap ballooned to as much as $70 on Tuesday – the biggest premium for Comex futures in at least 40 years. Usually the two trade within a few dollars of one another.”

Lastly, from an XAUUSD liquidity provider: “The price differential between the futures and the cash is usually a couple of dollars and the spread is stable. If it moves out of whack physical gold traders can arb by having gold bars refined in Switzerland and shipped to the USA for delivery to the futures market.

Due to the corona virus the 3 major refiners in Switzerland have been forced to close down. In addition the lack of commercial flights has stopped gold shipments. This has meant that the spread blew out by up to $65 on Wednesday and is now volatile moving $40 yesterday. There is no shortage of gold just a shortage in the US of a certain type of gold bar (the less popular swiss standard that the CME uses).”

Stay safe, I will update you on MONDAY as I need to wait for the markets to open before doing my detailed analysis and trade plan for next week,