RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

A sharp sell off in gold and other precious metals yesterday seemingly a result of an uptick in rates along with a bounce in the Dollar. We continue to hear so much chatter about inflation and that is the biggest factor driving gold recently and will continue to be the driving force behind future rallies. Of course inflation will lead to higher rates and higher rates will eventually lead to Dollar strength but don’t think for a minute that the Biden Administration is going to take their foot off the pedal. Not gonna happen! The Dollar is going to have a bounce here and there, and gold will have a dip here and there. Buy those dips is my recommendation. Gold came down and kissed the 200 DMA this morning at $1,855.90. Now we need to see gold prices north of $1,900 again. The 50 DMA is still way down at $1,805 but is quickly climbing towards the 200 DMA. When that 50 DMA crosses above the 200 DMA, you better be long. The “Golden Cross” is one of the best technical signals for gold. I think gold is still on the right track to see a continuation of the rally. Gold is in a bull market and inflation is heating up in things that every day people need…food, energy and housing. Once those wages start to move higher, and they must, to compete with unemployment benefits. You will see inflation really begin to heat up. Gold still is a good value longer term.

Gold Aug ’21 Daily Chart
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Frank J. Cholly

Senior Market Strategist
Frank is a swap registered trader who brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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