The Bias is More Upside in Metals FuturesPosted 03/02/2018 10:38AM CT |
With the gold market under significant pressure to start yesterday and the dollar pressuring prices, the reversal today must have caught a number of traders off guard. We are somewhat surprised that balanced Fed dialogue allowed for a nine-dollar bounce for gold off of its lows as the Fed pretty much said they still plan to raise rates several times throughout this year. This coupled in with the dollar forging new highs made for an interesting recovery in gold. However, the influences from previous trading sessions were cancelled out in the wake of Trump announcing the tariff on steel and aluminum imports as that kicks up safe haven interest in gold. While the April gold has rallied this morning and posts an impressive performance, prices have yet to regain the prior session’s highs which suggests a classic technical stop loss buying rally. The next downside target is 1297. The next level of resistance is around 1326 and 1338, while support comes in at 1308.
Gold Apr ’18 Daily Chart