RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Gold Remains Bearish

Posted 09/28/2018 9:23AM CT | Nicholas DeGeorge

In the early morning trade, December gold is slightly in the green and trading at $1,199.0 an ounce. After gold’s technical breach and sell-off yesterday, it is not really showing any kind of weakness or follow through so far this morning. Furthermore, some might see this as a positive for gold because the U.S. dollar has been on an absolute tear to the upside over the last two trading sessions. However, after December gold’s failure to hold the $1,200 an ounce handle, the shiny one is now open to retesting the August low of $1,167.1. Why did it fail to hold the $1,200 an ounce handle? I believe is because of the Feds action on Wednesday which caused the dollar to shoot up and metal across the board to come down.

In the short-term, gold’s next move might be based on the technicals, so let’s take a quick look at a December gold daily chart. You’ll clearly see that gold is in a long-term downtrend and this week it failed to hold onto and break above the $1,200 handle. Now, the shiny one is trading at its lowest level in 3 weeks and is prone to retest the August low of $1,167.1. If you’re just looking at the daily gold chart, you’ll clearly see the bearish downtrend and bearish chart patterns which I highlighted below.

Gold Dec ’18 Daily Chart

Gold Dec '18 Daily Chart

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Nicholas DeGeorge

Senior Market Strategist
Nicholas DeGeorge began his financial career in the mortgage/ banking industry. After a successful seven year career, he had an opportunity of a lifetime to trade for one of the larger proprietary day trading firms at the Chicago Board of Trade. While there, he specialized in trading energy (mostly crude oil), metals and e-mini S&P 500. After two years of being a proprietary trader, Nicholas became a Senior Commodities Broker at MF Global and worked for the top commodity trading adviser at the firm. While he was there, he learned a great deal about position trading and was exposed to other markets like grains and soft commodities. Nicholas attended Eastern Illinois University.
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