RJO FuturesCast

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Metals

The Bias is More Upside in Metals Futures

Posted 03/02/2018 10:38AM CT | Tony Cholly

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

gold_apr18_daily_chart

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Tony Cholly

Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
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