December Gold is Still in a Strong Uptrend
In the early morning trade, December gold is trading essentially unchanged for the session at $1,328.6, but is well off its overnight high of $1,338.2. Since North Korea launched another missile yesterday over Japan, the gold bulls must be a bit disappointed and confused with the price action. As of late, gold and interest rates have been getting a lift off news like that. The thing that makes yesterday’s launch especially interesting or concerning is that this is the first missile by N. Korea that can actually reach the American territory of Guam. If that news is actually processed by traders and investors alike, then I believe it’s very hard for them to want to go home this weekend short, which may give the bulls the upper hand again.
If we take a look at the daily December gold chart, you’ll clearly see that it’s in a very strong and long term uptrend. Gold is still trading above all of its major moving averages, and it’s not showing that it's over bought on the RSI indicator. With the overnight news out of N. Korea I believe this trend will continue.
Dec '17 Gold Daily Chart
Nicholas DeGeorge
Senior Market Strategist
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.
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