RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

February gold started this week higher Tuesday, after trading up off a new recent low of 1276.0. The past couple weeks the gold market has seen sideways trading, unable to break through resistance at 1298.0. Although this recent pull back from resistance has damaged the chart technically, pullbacks should be supported with demand from value buyers. Recent strength in stocks and the U.S. dollar has pressured gold, stalling its trend higher. Looking at a U.S. dollar chart coupled with U.S. scheduled data this week, we could see a possible pullback which would be supportive to gold. Tuesday’s recovery off the lows was brought on with increased volume and open interest which shows demand interest at what is perceived as valuable levels. With that said, a break of the 1276 low along with pressure from outside markets would decrease demand and move support down to 1265.0. Trade through resistance at 1298.0 would continue the trend higher. Look for a re-test of the low this week with positive trade after if the market can hold that level.

Gold Feb ’19 Daily Chart

Gold Feb '19 Daily Chart

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Tyler Herrmann

Senior Market Strategist
Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.
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