RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Gold is being capped by the $1,800 resistance and has a series of lower highs and lower lows this week. On top of that we see the US Dollar breaking out to new highs. I believe that gold is likely to move back down towards the $1,750 range and perhaps consolidate there for a while. Gold and commodities in general are under pressure mainly by this rally in the Dollar but some of the arguments that used to “support” gold prices are seemingly no longer supportive. Surging Delta cases, inflation fears, Fed tapering, softening data, recovery pace slowing, inflation fears moderating…what is it? Sounds confusing? Yes, it is confusing, and the traders are uncertain what to expect over the next three to six months. As it looked like we were headed for a huge economic boom due to re-opening the economy, we are in fact sliding back towards mandates that actually kill business and jobs.

It seems to me that gold has to pull back again to at least $1,750 or perhaps even $1,700 before traders find value.

Gold Dec ’21 Daily Chart
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Frank J. Cholly

Senior Market Strategist
Frank is a swap registered trader who brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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