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What Could Stop this Gold Selloff? – RJO Futures Weekly Gold Outlook

Weekly Gold Focus – Gold futures will continue to keep an eye on the OPEC meeting to monitor the intensity of the liquidation in oil futures and see if a spillover effect occurs in Equities, Metals and other futures sectors. However, I have been advising clients to focus more on the Payroll data due out at the end of the week and the Italian vote. I don’t expect it to have an impact on the rate hike odds on December 14th but to have more potential to weigh in on the 3 expected hikes going out till the end of 2017. Current estimates are for 175,000 jobs created. So this leads us into the vote...

Important Global Events for the Week

On Sunday December 4th we will see an Italian referendum vote which could trigger a banking crisis if investors decide to stop contributing to a 5 billion euro fund to bail out weak lenders. This could rattle the currently unstable Italian banking sector. With a “No” vote an entirely new Government could be formed sending us back into a Brexit like situation. Now it’s important to be able to identify these types of events and be able to come up with a strategy ahead of time.

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 2017 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:  2017 Commodity Calendar Trading Guide

Daily Chart Analysis and Price Outlook

The charts below are from provided by RJO Futures PRO, an exclusive and sophisticated online trading platform with integrated tools to seamlessly trade and monitor the markets.

Analysis and Outlook

The daily gold chart shows momentum indicators MACD and slow stochastics are rising from oversold territory and this is giving a cautionary bullish indication. ADX, which measures strength of the trend, has finally started to flatten out indicating that the selloff is starting to run out of steam. Gold needs to move back through $1200 and show some force back to the upside. Watch for a situation where gold consolidates at this level and becomes range bound until the next drop-off in the stock market or significantly weaker data out of this week’s economic reports. Pushes through the 1205 could indicate a move to 1225 which is the high range of the consolidation phase. Caution should be taken if we see a close below 1165 where a washout could occur. For a longer perspective, you can register for our 2016 Metals Outlook.

BY: Phillip Streible
pstreible@rjofutures.com.

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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