RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Gold has a new trading range as it bases another new bottom and gradually grinds its way higher. At some level gold will have an explosive type breakout to the upside and I think that level may well be $1,800. Gold had an impressive rally from $1,725 to $1,798.40. In my opinion the rally was rooted in Dollar weakness. After three failed attempts to move the rally above $1,800 we are now experiencing some simple back and fill action. So, the “new” trading range for now, is $1,750 to $1,800. The next attempt to take out $1,800 should quickly take gold prices towards $1,850. Dollar bounces cause gold pull backs. The Dollar cannot sustain any type of meaningful rally while the printing press runs full speed without interruption. Monetary policy will not change any time soon and gold will necessarily move higher as currencies around the globe are de-valued.

Platinum struggles to breakout and hold a close above $1,250. This too shall pass. Palladium has just made an all time new high and should also help support platinum. Platinum is a good long-term value in the $1,200 range. I would expect that when gold moves above $1,800 we will see platinum testing $1,300.

Gold Jun ’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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