RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

December gold traded to its highest level since last November overnight, but it has traded well off those highs as global stock markets have managed to avoid steep selloffs despite concerns over North Korea. Clearly, flight-to-quality and safe havens are going to be featured this week in gold, with other markets like silver, platinum, palladium, bonds, and the yen being factored into the mix. Historically, there might be fewer events with as much safe haven potential as the current North Korean situation. At least in the short term, the dialogue and actions coming from North Korea are likely to be seen as more important to gold than threats from the US and its allies, as the market is beginning to factor in another test. Furthermore, gold derivative holdings have reached their highest levels since September 2016, a sign of investment flowing toward that safe haven metal.

DECEMBER COMEX GOLD: Momentum studies are trending higher but have entered overbought territory. With the close higher than the pivot swing number, the market is in a slightly bullish posture and the next upside target 1342.2 with RSI approaching overbought levels over 70. Next area of resistance is around 1336.9 and 1342.2, while first support hits today bat 1323.9 and below there at 1316.1.

 Dec ’17 Gold Daily Chart

 Dec '17 Gold Daily Chart

Manon Lasserre