Gold Continues to Extend Rally

October 15, 2018 11:16AM CDT

Gold is continuing to extend its rally in the early session, coming off a 10 week high in the overnight amid declines in global equity markets as well as increased tensions between the U.S. and Saudi Arabia after the disappearance of a Saudi journalist. The precious metal has garnered support as a safe haven asset bouncing almost $30 an ounce last week amid the selloff in U.S. equity markets.  The technical buying, rotation out of stocks as well as a pullback in the U.S. dollar has lifted prices. Gold remains in a bearish trend, however, the recent upside move alludes to the idea that a longer term bottom may be in place. Look for the precious metal to trade sideways to higher in the near term with the next upside target seen around 1250 and then near the 200 day moving average at 1293.

Gold December '19 Daily Chart

Gold Dec '19 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.