RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Gold has now bounced four times off the $1,675 level. Now we really need to see a breakout above $1,750! Once again though, you must track the US Dollar and the 10 Year Note yield. Dollar strength is unsustainable with the policy coming out of Washington DC. Sure, the rising rates are somewhat Dollar supportive, but the rising rates are more indicative of the risk of inflation because of the endless amounts of “stimulus”. The Dollar is being devalued and the gold rally is technically set to resume its march towards $1,800. Above $1,800 I see the momentum accelerating. As the Dollar resumes its downtrend, and I’m confident it will, gold will catch a good bid and final leave $1,700 in the rearview mirror. Again, markets must get use to a rising rate environment. If rates are rising due to inflation, then gold will also rise.

Platinum has also bottomed out around the $1,150 range. A close above $1,200 would be considered bullish as that would be above the 10, 20 and 50 DMAs. I like platinum best of the three precious metals. Platinum has the upward chart direction. The trend is your friend.

Gold Apr ’21 Daily Chaaart
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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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