Is there still interest in gold futures?

August 24, 2016 9:33AM CDT

December gold futures are currently trading near the lows of the day at 1328.6, hanging on to a short term price rejection by bulls, trying to defend today’s lows at 1327.10. With light volatility and tight ranges for the last two weeks of trading, gold is starting to find support and buying interest at the key level of 1328 and also illustrated by the trend lines on the chart below. If the bulls can hold a panic level of 1317 through the overnight session, the bulls will try and quickly get prices back up to the top of the range, and looking to push new highs in a big way.

Gold prices consolidated into this 25 point range in the triangle illustrated below do to mixed fundamental news supporting both sides, causing a muted follow through at both ends of the range, and confusion to most trend traders lacking follow through and interest. Periodic weakness in the dollar, recovery in oil prices, news of increase hostility between Syria and Turkey, and weak crude prices are just shy of a handful of mixed news lines muting the gold market and not trading with normal behaviors and speed.

But stay tuned. The volatility switch definitely flipped on all markets will be effected. There should be great opportunity between now, and this Friday’s close. Markets will be trading in new ranges that will be larger. So the game plan should be to try and identify market type, and find short term control around key levels at high and lows of range. Give me a call to discuss timing details and strategy.

Gold Daily

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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.