Gold in Tight Range, Will it Hold High? | RJO FuturesPosted 05/26/2017 7:46AM CT |
June gold had a very uneventful day yesterday with a tight trading range of roughly six dollars, and ended the day up just two dollars trading at $1,254.9. Actually, gold has been in a tight trading range all week with it just $15 between the weekly high and low. However, it did dip to a 3 week low Wednesday, but has rejected a price below $1,250.0 an ounce so far. Gold should enjoy some support at these levels with Turkey, Russia, Argentina, and Kazakhstan as they all saw their gold reserve holdings rise with a total 25.4 tonnes accumulated between the countries. However, Chinese net gold imports from Hong Kong declined by 33.5% from the prior month, which has offset the bullish tone just a bit.
If we take a look at the daily June gold chart, you’ll clearly see this week tightly trade range. Therefore, I would approach this market very simply. If gold breaks above and holds this week’s high of $1,263.8, I would suggest going long. If gold breaks below this week’s low of $1247.6, I would consider selling the market.
Jun ’17 Gold Daily Chart