01/20/2015 9:28am CST
In the early morning trade, February gold is still enjoying its recent rally and currently breaking another fresh high trading at $1,288.7. I believe the shiny one has extended its recent rally in large part on hopes that the ECB will pursue a fresh new round of stimulus this Thursday, which has also extended rallies in global equity markets. Also, world currency markets have endured a huge sell-off over the last couple of months, which investors/traders alike have been repositioning their bets; due to the huge volume increase in the shiny one I'm betting that's where a large chunk of their capital has been moved to, therefore helping to further extend the rally in gold.
If we take a look at the daily February gold chart, you'll clearly see that the gold has broken a lot of resistance and is currently prone for higher prices. If gold can break the $1,300.0 an ounce level, these are the three levels I believe it could at least retest: First, $1,323.0, which is the August 8th high; next, the high of July 10th of $1,347.3; and finally, the March 14th high of $1,389.1, which is not out of the question for this market to retest by the end of the first quarter of 2015.
If you'd like to learn more about futures trading or the metals market specifically, please contact Nick DeGeorge at 312-373-5316 or firstname.lastname@example.org.
Feb '15 Gold Daily Chart
Source: RJO Futures PRO