Metals

Will Gold reach $1,300?

Posted 07/21/2017 9:44AM CTNicholas DeGeorge

In the early morning trade, August gold has extended its rally another $5 overnight and is currently trading at $1,250.0 a troy ounce. The continued downside of the US dollar has yet again provided gold a move and rally higher. Yesterday’s rally in gold was even more impressive in the wake of the ECB expressing concerns over low inflation readings. However, the benefit for gold in the long run would be that both European and US rate hikes would have to be pushed back because of lingering deflation concerns.

If we take a quick look at the daily august gold chart, you’ll clearly see that gold broke out above a downtrend back on July 14.  Also, it is back above all the major moving averages and now is prone to rally up to $1,300.0 a troy ounce and with the fundamentals to support this short-term rally. Below is a daily August gold chart with the levels above. 

Aug ’17 Gold Daily Chart

Aug '17 Gold Daily Chart

Nicholas DeGeorge

Nicholas DeGeorge began his financial career in the mortgage/ banking industry. After a successful seven year career, he had an opportunity of a lifetime to trade for one of the larger proprietary day trading firms at the Chicago Board of Trade. While there, he specialized in trading energy (mostly crude oil), metals and e-mini S&P 500. After two years of being a proprietary trader, Nicholas became a Senior Commodities Broker at MF Global and worked for the top commodity trading adviser at the firm. While he was there, he learned a great deal about position trading and was exposed to other markets like grains and soft commodities. Nicholas attended Eastern Illinois University.