Metals

Strong Dollar Continues to Push Gold Selloff

Posted 06/09/2017 9:03AM CTNicholas DeGeorge

In the early morning trade, August gold has continued yesterday’s sell off, which is largely due to strength in the US dollar and favorable US economic data from initial jobless claims. Also, former FBI director Comey’s testimony on the Trump Russian saga ended up being uneventful and probably took the fear trade off the table for the bulls. Furthermore, the UK political uncertainty failed to bring fear buying into the market.

If we take a look at the daily August gold chart, you’ll see that it’s pulled back just $30 of its June 6 high of $1,298.8. Its also breached a one month bullish trend line, but currently has not closed below it and is still trading above all its major moving average with the 20-day trying to cross above the 50-day, which usually means to bullish trend will continue, but only time will tell. Below is a chart of the daily August gold chart. 

 

Aug ’17 Gold Daily Chart

Aug '17 Gold 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.