RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

The gold trade seems to be a little too easy recently, incrementally working its way higher since putting in a low of $1,677.30 on March 31st. Or is gold finally behaving the way one would expect in an inflationary environment? Who cares? Go with the trend! Use the chart and track the US Dollar. I fully expect the rally in gold to continue even as I would expect that the treasury yields in the ten-year notes to rise. The shock of the sharp rise in rates is over. There has been a necessary pause and much debate about rising rates and the prospects of inflation. Inflation is real and gold likes inflation. Gold should not have too much difficulty breaking out above $1,900, especially as the Dollar looks capable of testing .8900.

So, yea, it looks like an easy trade right now. It’s a friendly trend. Remember the adage, “Don’t confuse a bull market for genius”. More importantly, remember to practice good risk management when trading commodity futures. Use options or stop loss orders. Work with a professional.

I’m bullish metals and commodities in general as we have too many dollars chasing too few goods. Gold is assuming the leadership roll once again. Keep it simple!

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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