RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

June gold futures have seen unbelievable volatility over the past few weeks. We are now seeing an average move of $49 for the average true range on any given day. We made a high of $1789 and are now just days later at $1710 at the time of this article. Investors should be cautious in this market and potentially look at the options contracts and smaller futures contracts such as the 10,33, and 50 oz contracts if new to trading futures. I can provide strategies depending on the client’s risk tolerance and bias in gold for anyone interested.

Technically speaking, gold has not seen a close below $1700 since April 8th. We need to maintain closes above $1700 at a minimum in order to justify a push above $1800 in my opinion. The volume has been very low and less than half of the average trading volume since the end of March. This should be taken into consideration as big moves up or down can be taken with a grain of salt. It’s important to look at key price levels, and right now we need a new high sooner than later with some closes above $1750 now needed. We could also be setting up for another push above the recent high of $1788 with a bull flag pattern appearing to form with the 4-day selloff. Is now the time to buy? If you are bullish gold and don’t believe the stock market bounce, yes, this is a level that should be considered for long exposure. The fed is printing money on an endless basis, and the stock market could easily be derailed by additional negative economic data which has been horrendous so far. There are clear reasons to own the precious metal, and it won’t take much to push us back to the highs in my opinion.

Gold Jun ’20 Daily Chart
800-438-4805312-373-5383Series 3 Licensed

Joshua Graves

Senior Market Strategist
Josh began his career in May of 2013 after graduating from Purdue University, West Lafayette. He received a degree in Agricultural Economics, with a Certificate in Entrepreneurship. He started at Paragon Investments in Kansas, the heart of wheat country. While working there he developed long term relationships with corn, soybean, and wheat producers, speaking with them on a weekly basis. His goal was to market their physical production more effectively through tracking basis, as well as hedge their exposure in the grain and cattle markets through a variety of futures and option strategies. He then moved to Florida to work for PFL Petroleum, a physical biofuels brokerage, and gained significant exposure to OTC and physical energy markets. Trading has been a passion from day one of his career. In his free time he stays active in downtown Chicago, attends sporting events, and holds an FAA Private Pilot’s License and flies Cirrus and Cessna aircraft regularly.
Read More