June gold futures have once again, shown that discounting a potential run to the highs in gold is a bad idea. I have not been overly bullish or bearish the metal over the past few weeks, mainly because it doesn’t seem to be trading based on the usual “stocks down gold up” type of move and rather sideways in nature. I’ve seen days where gold has soared along with stocks and just the opposite; the most notable being the market crash in March that took gold down with it. My view of the gold market has no bearing to where it will go, however, the price action along with silver futures today has be believing that if it does continue higher gold should catch some of the wind pushing silver.

Fundamentally, I could make a case either way from the fed printing too much money being bullish but bearish with industrial demand in India and China weakening putting pressure on the gold long term. A good trader knows when to stop listening to the constant noise in the market and start looking at technical trading, more so than what you usually would. Gold held a 50% retracement level from April 1 until now, which came in at 1680 on the June contract. June gold does look much better than it did just a week ago, and it will look even better on a close above the contract high. When this happens, traders shouldn’t immediately press the bet, but rather wait for the first dip once it’s made that move above 1790. Options in conjunction with futures are a great way to trade with limited risk and excellent reward potential.