Metals

Gold Trying to Rally Back Above $1,600

Posted 02/14/2020 9:06AM CTNicholas DeGeorge

In the early morning trade, gold has extended on its rally which started last week at $1,555 and is currently trading at $1,579, which is up 1.5% in a week. Obviously, the coronavirus is the driving force of the recent gold rally while it provides fear and concern in the metals and interest rate sectors, which has caused buying from investors/traders alike. Also, the shiny one has expectations that China will eventually release a massive stimulus package after the virus subdues. Furthermore, ETFs saw a 17th straight day of inflow.

If you take a look at the April gold chart, you’ll clearly see that the gold bulls have taken over on Christmas Eve and have been in control ever since. It is in a strong bull trend and looks like it wants to retest the contract high of $1619.6 which was made back on January 8th. I have highlighted these levels below on my RJO Pro daily April gold candle stick chart. 

Gold Apr ’20 Daily Chart

Nicholas DeGeorge

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.