Metals

Is Gold Still a Buy?

Posted 10/27/2017 9:18AM CTNicholas DeGeorge

In Friday’s early morning trade, December gold has bounced back off its overnight low. This is mostly due to the Catalonian lawmakers vote to split from Spain, taking the country’s political crisis into uncharted territory. Also, after the ECB announced their long-awaited QE tapering, the US dollar went sharply higher Thursday, which caused commodities across the board to come down. The US House of Representatives are another catalyst that was pushing the dollar up and gold down, as they adopted a budget that could further the President’s agenda on re-writing the tax code.

If we take a quick look at the daily December gold chart, you’ll clearly see that gold broke the long-term trend line that began back on July 10. However, gold is trying to hold onto the 200-day moving average of $1,267. If it does, look for a rally back up to $1,285-$1,300 a troy ounce. I have highlighted below the technical levels in this article on our RJO Futures Pro charts. 

 

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.