RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Gold futures ended lower on Thursday, after a five-session streak of higher prices to its highest level in about 13 weeks. The trend on Friday looks to be the same as Thursday with some renewed strength in the U.S. dollar, as well as a rise among most U.S. equities.

Gold prices have gained in each of the last 5 trading sessions to settle Wednesday at their highest level since November 10th.  A good portion of the bull-run in gold the last several weeks has been a result of the general belief that the Trump rally moved too high, too fast.  Year to date, gold futures have gained more than 7%.

The cool down that started yesterday comes from an imminent tax announcement by the Trump administration, causing gold to take another breather as metal investors are likely taking profit on the recent 10% move off the December bottom.

Meanwhile, the path for U.S. interest rates has also been a key factor in gold.  Data on jobless claims Thursday did little to sway the metals market from expectations for gradually higher Federal Reserve interest rates this year.  The next FOMC meeting is less than 4-weeks away from when the next Federal Reserve meeting takes place.


Short-term Gold Strategy

The April Gold futures are stalling early in the morning continuing to hamper the bull drive higher.  The market looks like it is setting up for a sell around 1229.50.  The short-term bottom to buy back would be around 1225.00. 


Gold 60 min Chart

Tim Haberkorn