Gold has been range bound between $1,750 to just under $1,800 for the past two weeks since the Fed induced sell off. A breakout with a close over $1,800 will quickly take the trade to $1,850. The $1,750 swing low should hold. I don’t expect that $1,750 is even likely to be retested. In fact, I think the next trading range that I will be discussing is $1,850 to $1,900. Gold likes these fifty-dollar ranges and they are very tradable while they last. I also expect that the next run back to $1,900 will be another breakout run towards $2,000! The 50 DMA and the 200 DMA are about to cross. If I’m right and the 50 DMA crosses above the 200 DMA that will be a “Golden Cross”, a very bullish signal. Plus inflation with wage inflation will be the next reason why you might want to own gold.

Platinum in the $1,050 range is a good long-term value. A breakout above $1,100 is needed to confirm a bottom is in, but if gold rallies then platinum will follow.

Gold Aug ’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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