December Gold: Buy in Now?

November 2, 2018 9:33AM CDT

December gold futures have seen more volatility recently as the market continues to try and etch gains and find a reason to be bullish. Over the past week, we have seen $30-40 moves from the lows to highs and there seems to be a sentiment that with the stock market volatility, gold is becoming more of a safe haven than 3 months ago. With today’s recent blowout, non-farm payrolls number of 250,000 vs the estimate of 118,000, the gold market will continue to struggle with the generally positive and upbeat economic data that continues to come from the Fed. All signs still point toward a rate hike in December, and the U.S. dollar would be more attractive as an investment than gold as it yields higher returns than a non-interest-bearing asset such as gold. I believe that a big reason we are still sitting above the $1225 level is more technical than fundamental.

If you look at how gold has traded in recent months, once we traded above the 1220 level and broke to the upside on October 11th, this was a turning point to where now 1220 becomes support as that was congestion for months with failure to take out 1220. The next key level to watch before a strong buy could be warranted is a move above 1246. This is the October 26th high, and traders are sure to watch this level as something to buy if we are to see a close above that level.

Gold Dec '18 Daily Chart

Gold Dec '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.