RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Gold Shines on Dark Days

Posted 04/09/2019 9:12AM CT | Eric Scoles

June ’19 gold futures price finds support in threats to U.S. and Euro equities markets, supply limits, and a weaker dollar this morning. President Trump is threatening significant new tariffs on European goods, taking some of the confidence out of the U.S. and Euro stock indices. The U.S. dollar has been in a near term downward trend since Apr 5th and needs significant positive news before seeing a reverse in momentum. Adding support to gold prices is the strike conditions in South Africa lowering production to 36% of year-ago levels which is slightly less than anticipated for these conditions, and China buying more gold for their reserves in March. With the alternatives looking weaker today, limits to supply, and a demonstrated demand? In my opinion, the outlook for the shiny stuff is bullish in the near-term. However, caution is to be paid to any positive news for equities or strength in the dollar.

Gold Jun ’19 Daily Chart

Gold Jun '19 Daily Chart

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Eric Scoles

Market Strategist
Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.
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