June Gold Trade, $1300 Gold Coming Soon? | RJO Futures

April 7, 2017 8:57AM CDT

June gold has seen quite the rally since the Mid-March 1200 lows. We have recently seen gold spike to new relative highs we have not seen since the election back in November. The US Military recently launched missiles targeting a Syrian airbase that launched this week’s chemical attack, and is currently up $17. Gold has now moved through the 200-day moving average and needs a close above 1265 to turn the longer term trend higher. Gold will likely see resistance at 1275, which corresponds with congestion back in October. If we manage to clear this hurdle a run to 1320 is not out of the question. There is currently a risk off mentality given the uncertainty surrounding conflict in the Middle East, the ability to pass significant tax reform in a timely manner, and recent economic data this morning showing a large drop in non-farm payrolls well below expectations. If this economic data continues to come in below expectations, or has any hint of not being “stellar” you could continue to see a build in gold.

If you look at this from a technical standpoint. The market is in a clear bull direction. The MACD has crossed indicating a buy signal on March 20. We are marching toward overbought territory at this point, and it will take more bullish news regarding conflict or poor economic data to put this market into a sustainable rally. At this point 1250 becomes excellent support, and traders should use this level to structure option strategies with 1225 becoming the next level of support beneath that. 


June Gold Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

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.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.