RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

August gold futures have crossed an important milestone in the contract and crossed it with strength. $1800 was a very important level to get a close above and do it with volume behind it. I think that given the economic pain likely ahead (safe haven play?) you could see gold continue to find its footing and see a push toward that all to familiar level of $2000. While this will likely take months to accomplish if gold moves up in a stable pattern, the idea of $1600 gold before $2000 gold I’m not believing anymore. I was skeptical about long gold as we couldn’t ever seem to get above $1790 for more than a day or two. The blast through $1800 all the way to $1830 says quite a bit.

The record push into gold ETF holdings, the unlimited Fed stimulus, and a general safe haven investment push have all led the precious metal higher and the rally is likely to continue. I think traders and investors should be eyeing gold very closely as at 8-year highs, any pullback of significance should be bought into even if it means buying in on a big down day (often hard to do among new traders). Traders can take advantage of the new likely range bound trade as we grind sideways to higher using different types of strategies, including options, which we sometimes incorporate in our strategy development. I am recommending a general long position in gold, and the purest way of doing so is going directly to the precious metal itself in the futures market and not an ETF. If you would like more information on various strategies we are trading please contact me directly.

Gold Aug ’20 Daily Chart
800-438-4805312-373-5383Series 3 Licensed

Joshua Graves

Senior Market Strategist
Josh began his career in May of 2013 after graduating from Purdue University, West Lafayette. He received a degree in Agricultural Economics, with a Certificate in Entrepreneurship. He started at Paragon Investments in Kansas, the heart of wheat country. While working there he developed long term relationships with corn, soybean, and wheat producers, speaking with them on a weekly basis. His goal was to market their physical production more effectively through tracking basis, as well as hedge their exposure in the grain and cattle markets through a variety of futures and option strategies. He then moved to Florida to work for PFL Petroleum, a physical biofuels brokerage, and gained significant exposure to OTC and physical energy markets. Trading has been a passion from day one of his career. In his free time he stays active in downtown Chicago, attends sporting events, and holds an FAA Private Pilot’s License and flies Cirrus and Cessna aircraft regularly.
Read More