01/06/2015 10:20am CST
In the early morning trade, February gold is trading up again and extending its rally for a third straight session. After ending its second straight year of decline, the shiny one is looking to bounce back and hoping it will see signs of real inflation in 2015. The big drop in the S&P, copper and crude oil are causing a lot of uncertainty, which I believe is the main cause of this three day rally. However, can gold continue its rally with all the deflationary signals that are currently out there?
If we take a look at the daily gold chart, you'll clearly see that gold is breaking out. If gold gets back above today's high of $1215.0 an ounce, then look for it to retest the December 9th high of $1239.0. If it fails to hold this level, then look for a retest of last week's low of $1178.8.
If you'd like to learn more about futures trading or the metals market specifically, please contact Nick DeGeorge at 312-373-5316 or email@example.com.
Feb '15 Gold Daily Chart
Source: RJO Futures PRO