Gold is in another holding pattern, trading sideways and marking time until the next breakout to the upside. Gold has been holding above $1,810 and has also been capped by resistance at $1,850. Gold will break out above $1,850 when the US Dollar drops below .9000. It’s coming! In the meantime, there is a defined and tradeable range. Try to stay long a deferred contract month while scalping the front month would be one way to approach this market.

ETF inflows have been positive. The dollar has been trending lower. Inflation, real inflation that you and I see everyday is here. The government’s measured form of inflation is also becoming undeniable. That’s why they, the Fed speakers, are calling it transitory inflation. They want you to believe there is a “goldy locks” scenario. Not too hot, not too cold. That they will spark inflation, fan the flames and pour gasoline on the flames but be able to keep the fire under control. I don’t buy it. We’re going to continue to throw money at the economy when we already have an all time high of cash sitting and waiting for the economy to fully open. Stay long gold. The low is in!

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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