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

gold_feb18_daily_chart

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