RJO FuturesCast

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Metals

Gold Continues its Recent Sell-Off

Posted 04/18/2019 9:57AM CT | Nicholas DeGeorge

In the early morning trade, June gold has continued its sell off, currently trading at $1,276, which began last week on the 11th after a strong 51-year low jobless claims number. Gold has struggled recently with global equity markets signaling risk off with a possible U.S./China trade deal near and along with continued strong macro-economic data overnight. The U.S. dollar continues to strengthen off strong economic news which has caused more pressure to gold and the news overnight that a South Africa gold mining company will be back up and running again after a five-month strike won’t help the shiny one either. Furthermore, with the Fed indicating yesterday a possibility still for another rate hike later this year one would think the bear camp has clear control for now.

If we take a quick look at the daily June gold chart, you’ll clearly see that on Tuesday it broke below the previous three lows which acted as support. Moreover, now it sets up a sell off down to its 200-day moving average which rest at $1,267 an ounce or even lower.

Gold Jun ’19 Daily Chart

Gold Jun '19 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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