Metals

Does the Gold Bull Camp Still Have Control?

Posted 06/26/2020 9:14AM CTNicholas DeGeorge

In the early morning trade, August gold trading slightly in the red and looking a little toppy after it failed to break above yesterday’s high of $1,779 a troy ounce. Yesterday, the bull camp was in control trading nearly at 8 years highs and a rise in open interest, but that could be slightly dampened with the announcement that a 2nd round of Coronavirus stimulus checks will be delayed. Furthermore, gold ETF’s have reported that this was the 6th largest week ever in buying them, so that could add support and minimal downside risk.

Gold is still in a very strong uptrend with support down to $1,750 an ounce, but if it gets below that level look for a larger pull back in this market. If it breaks yesterday’s high which I mentioned above, then look for a rally above $1,800 an ounce.

Gold Aug ’20 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.