RJO FuturesCast

Daily Futures Market News, Commentary, & Insight


Is Gold Putting in a Bottom?

Posted 08/17/2018 9:03AM CT | Nicholas DeGeorge

In the early morning trade, October gold is currently trading slightly up at $1,181.1 and it’s still trying to find a bottom after over a $200 selloff since the high was made back in January of $1,386.0. However, gold did snap back over $20 off its lows from yesterday but has failed so far this morning to show signs of it continuing. The possible near-term low in gold yesterday was slightly due to a weakened US dollar and rhetoric that US/China trade talks were back on for next week was seen as a positive.

Picking a bottom in any market is never easy, so for me to get bullish on gold again, I would need to see it get and close above a bearish trendline that started back on July 9 and comes in roughly around $1,210.0. If the shiny one can do that, then look for a rally up to $1,250-$1,275 an ounce. I highlighted these levels below on my RJO PRO daily October gold chart.

Gold Oct ’18 Daily Chart

Gold Oct '18 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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