Metals

Gold’s Selling Off Back Down to $1,300

Posted 02/02/2018 8:57AM CTNicholas DeGeorge

In the early morning trade, April gold has sold off significantly from its overnight high of $1,353.3 and is currently trading at $1,338.5. The selloff is due to a better than expected non-farm payroll number from this morning, which January added a better than expected 200,000 jobs. Furthermore, the year over year hourly earnings were very impressive and came in up 2.9% which was the highest reading since 2009. The great jobs numbers from this morning gave a lift to the US dollar which is another factor why April gold has sold off as well.

If we take a quick look at the daily April gold chart, you’ll clearly see how the shiny one broke below its trend line earlier in the week and has since stayed below it. Also, if gold can break below this week’s low of $1,335.5, then it is prone to a further sell off and will probably sell off down to its 50-day or 200-day moving averages, which it should find some support. I highlighted all these level below on our RJOF PRO daily April gold charts.

Gold Apr ’18 Daily Chart

gold_apr18_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.