Metals

Is Gold Putting in a Bottom?

Posted 08/17/2018 9:03AM CTNicholas 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

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.