Metals

Gold Breaks Above $1,325 an Ounce

Posted 09/01/2017 9:11AM CTNicholas DeGeorge

In the early morning trade, December gold has extended yet again its very impressive rally and is currently trading at $1,331.3. Yesterday, gold reversed its sell off and continued its rally today, and is currently up $9 a troy ounce and the technical condition definitely favors the bulls. With today’s disappointing non-Farm payroll number, the US dollar continued to sell off which gave more fuel to this already powerful gold rally. Furthermore, it will be impossible to predict what’s next out of North Korea, which in end should keep gold above $1,300.0 for a while.

If we take a close look at the daily gold chart, you’ll clearly see the strong bullish trend line and the strong buying off Thursday’s low of $1,302.30. Gold breaking above $1,325.0 overnight leaves the upside target now between $1,350-$1,375 and if N. Korea launches another missile over the weekend, it could get up there in a hurry. Furthermore, gold is trading above all its major moving averages, which are all sloping up. 

Dec ’17 Gold Daily Chart

Dec '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.