Can Gold Get Back Above $1,300?

by Nicholas DeGeorge
November 24, 2017 9:40AM CST

In the early Friday trade, February gold is slightly down $4 and currently trading at $1,288.0. After the dollar had a huge sell off on Tuesday and equities backed off their all-time high, the stars were aligned for gold to have a big day and closed at its second highest level in over a month at $1,294.6. As the stock market has regained its upward momentum, gold has lost a little of its steam. The US dollar has continued its sell off overnight, so after a big day on Wednesday for gold, watch for it to continue its rally today. However, Fed Chair Janet Yellen’s statement of concern about a lack of inflation has traders a little less optimistic of further rate hikes into 2018. 

If we take a look at the daily February gold chart, you’ll clearly see the trend line that gold needs to break above and hold in order to continue its rally. It roughly comes in at $1,299.0, so if it closes above the $1,300.0 an ounce handle and the US dollar continues to sell off along with some bullish news, then gold might be able to rally all the way back up to its high of $1365.8, which it reached back on September 8. 

 

Feb '18 Gold Daily Chart

Feb '18 Gold Daily Chart

Nicholas DeGeorge
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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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