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Metals

Can Gold Extend Last Week’s Gain

Posted 08/31/2018 9:14AM CT | Nicholas DeGeorge

In the early morning trade, October gold is currently trading slightly in the green at $1204.0, but still trading below last Friday’s weekly close of $1,207.5. Gold pushed higher over night mostly due to President Trump’s talks of an additional $200 billion in Chinese imports which has caught the bull camp’s attention. Furthermore, some of his rhetoric on trade from last night’s speech in Indiana might have increased anxiety that these trade wars will continue for longer than expected and therefore, has also created some safe haven buying support for gold. The U.S. is going into a long weekend and a lot could happen, so it might be hard going home short, which gives the bull camp a slight advantage here in the short-term.

If you take a quick look at the daily October gold chart, you’ll see that last week gold broke and held above it. Two weeks ago in my last article, I stated October gold would have to break above this bearish trendline in order to caught some real momentum buying, which it did. However, I also mentioned that gold would have to close above $1,210.0 a couple times in order to see further upside, but that has only happened once in the last week. Since it’s Labor Day Weekend here in the U.S. there has been very low volume across the commodity markets, so that is probably a key reason for poor follow through. We’ll just have to wait until next week to see how this market plays out.

Gold Oct ’18 Daily Chart

Gold Oct '18 Daily Chart

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Nicholas DeGeorge

Senior Market Strategist
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.
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