RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Gold Waiting on the Fed for Next Direction

Posted 09/21/2018 9:06AM CTPhillip Streible

With the U.S. dollar hitting a nine-week low versus major currencies on reports that the U.S. and Canada have not reached an agreement on NAFTA, gold has been trading higher this week.  Supporting the bullish move the Commitment of Traders report shows the commercials for the first time in 17 years have become net longs.  Watch for the FOMC meeting next Tuesday and Wednesday where according to the CME Fed watch tool there is a 93.2% chance the fed will likely raise rates. Also, keep an eye on developments with Brexit talks with any rejection impacting the pound/euro and therefore the dollar.

Looking at a December daily gold chart the metal has been trapped in a trading range for the past month with $1192/oz as support and $1216/oz as resistance. Most likely a break above or below these numbers will determine the next trend in the market.

Gold Dec ’18 Daily Chart

Gold Dec '18 Daily Chart

Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.