RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

In the early morning trade, April gold is up again after yesterday’s roughly $20 sell-off and $30 off this week’s high. The U.S. dollar is slightly up this morning and the gold bulls have to be pleased that the shiny one is trading higher for the day. It looks like the driving factor in gold right now is the subtle shift in opinion toward the Fed’s stance of being less dovish along with the thinking that economic uncertainty will decline following a trade deal between China and the U.S. If the trade deal goes through with China, one could say that physical demand for gold will go up on hopes of growth and inflation woes. The gold bears can make a case that gold can sell off do to a trade deal causing safe haven liquidation.

Let’s take a look at the daily April gold chart and keep it simple. You can clearly see the strong bullish April gold that started back in mid-April and a bullish channel since the beginning of the year. For the gold bulls, stay long if you see gold in this channel and above its bullish trendline. For the gold bears, look to be patient a sell at the top of the channel or if it breaks below the bullish trendline.

Gold Apr ’19 Daily Chart

Gold Apr '19 Daily Chart

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Nicholas DeGeorge

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.