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Is Gold's Next Stop $1300? - RJO Futures Weekly Gold Outlook

Commentaries & Views

Weekly Gold Focus – Gold futures are starting to get some wind behind its sails after news that Greece is struggling with bailout terms, and fresh austerity measures are being met with resistance. France is also rattling the European Union’s cage with far-right leader Marine Le Pen reiterating that her party is committed to pulling out of the EU and restoring the Franc as the country’s official currency. This type of “FREXIT” news could dismantle the EU and Euro currency, sending gold to the next level. Gold has also maintained its strength with U.S. and global economic data improving. Generally, this type of data puts pressure on gold, but uncertainty surrounding Trump’s policies has caused some investors to exit the equity markets and voice concern leaving the FED between a rock and a hard place. The next FED meeting is March 15th, and if the FED decides not to raise rates and gives a dim outlook, this could have a big impact on gold.

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 have some of them available to send out now. 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.

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Daily Chart Analysis and Price Outlook

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

Analysis and Outlook

The daily gold chart continues to show that momentum indicators, MACD, and slow stochastics are moving higher, but not yet reaching overbought territory which is a bullish sign. The ADX indicator, which measures strength of the trend, is turning back higher showing that the trend is gaining strength. Gold has cleared the 1220 mark and is targeting 1250. Pushes through the 1250 could indicate a move to 1300. We are currently recommending bull call spreads on this market. For a longer perspective, you can register for our 2017 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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