RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Gold’s Bullish Trend is Broken

Posted 09/29/2017 9:36AM CT | Nicholas DeGeorge

In the early morning trade, December gold is slightly up and currently trading at $1,290.1. However, it is trading $10 higher than yesterday’s low. Yesterday, December gold hit its lowest level since mid-August and bounced up off its 50% Fibonacci retracement point. With the gold chart technically broken, it will be hard in the short-term to get and stay back above $1,300.0 an ounce. You’ll need more aggressive rhetoric from our President, North Korea, or even some kind of physical action from the two. If you get nothing from that direction, then a bad jobs number next Friday or some solid evidence of inflation could do the job as well.

If you take a quick look at the daily December gold chart, you’ll clearly see that last week it broke its bullish trend line from early July. Therefore, unless we see any action which I mentioned above, I would consider watching that bearish trend line which is highlighted below on the daily gold chart. As of today, it comes in roughly at $1,310 an ounce. 

 

Dec ’17 Gold Daily Chart

Dec '17 Gold 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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