These Two Events Make Gold A Buy - RJO Futures Weekly Gold Outlook
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Weekly Gold Focus – Gold futures saw a major shift in sentiment in the past 24 hours with minutes from the FED and news of the cancellation of the Singapore North Korea Nuclear Summit. Until recently gold futures were trading at the lowest prices of the year and it looked like key levels of support were not holding with higher interest rates looming. The ten-year treasury rate had punched through 3% and hit a high of 3.128% pressuring gold down to $1281.2/oz. Fed officials then said that theywere comfortable allowing inflation to run briefly above their target as the economy rebounds indicating they would be less hawkish and may not raise rates as many times as expected (3 or 4).
The market is also keeping a close eye on events surrounding North Korea, South Korea and China. If the U.S. halts military exercises or removes troops from the area or North and South Korea schedule a new meeting, these events will all likely hurt gold prices.
Important Global Events for the Week
Next week will have numerous important data releases out of the U.S. including Consumer Confidence on Monday, GDP on Tuesday, Personal Income on Thursday and Employment data and ISM data on Friday.
I always keep a commodity calendar and monitor RJO’s Market Insights to stay on top of important global events. If you haven’t ordered a complimentary 2018 Hightower Commodity Trading Guide & Calendar, we will have some of these available to send out in the next few weeks. This is your “go-to” resource for Government & Industry Report Dates, Futures and Options Expiration Dates and more than 350 charts and graphs. *Available to U.S. residents only.
You can request yours here: 2018 Hightower Commodity Guide
Daily Chart Analysis and Price Outlook
The daily gold chart shows momentum indicators MACD and slow stochastics are rising from oversold territory possible starting a new bullish trend. ADX, which measures strength of the trend, has weakened significantly to 33.20 showing that the downward trend is continuing to weaken. Gold needs to move back over the downward sloping channel which should spark another wave of short covering up to the 200-day moving average at $1316.1/oz. Only a close over that level would confirm a new bull market is in place. Caution should be taken if we see a close below $1300 where a washout could occur down to $1281.2/oz.
The charts above are from provided by RJO Futures PRO, an exclusive and sophisticated online trading platform with integrated tools to seamlessly trade and monitor the markets.