Gold Futures Could Lift All Commodities

January 18, 2018 11:30AM CST

The gold futures market has added a $107.00 of premium since the December 12 swing low of $1,238.3. The past two trading sessions have topped out at $1,345 and $1,344.5 stemming the upward momentum before the market could fill a gap that goes back to the weekend of September 8 to September 11. The gap is from $1,347.8 to $1,351.4. I think that after the $100 plus rally that a little pull back to test support at $1,320 is in order. The market may pause and consolidate another base at that level before moving higher again to fill the gap. The gold market will likely find some good resistance and run into some profit taking pressure from $1,350 to $1,360 range. Above $1,360 there is not much in terms of resistance until $1,400 level.

Much of the recent strength in gold has come from the dollar weakness and perhaps even a big melt down in the cryptocurrency sector. However, the technical action is very impressive for gold futures. I would not at all be surprised to see the buying enthusiasm in gold spill over to other “under-valued” commodities.

Gold Feb '18 Daily Chart


RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.