RJO FuturesCast

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Metals

Gold Looks To Be on The Move

Posted 11/13/2019 8:52AM CT | RJOF Editorial Team

Stop me if you heard this before, gold is moving based off comments (or lack thereof) by President Trump on the China trade situation. December gold jumped up $2.85 to $1,453.70/oz yesterday afternoon after the President had very little to share on what was expected to be a partial trade agreement with China. While many people were disappointed Trump had nothing to say, gold investors were not part of them. Gold had been stuck in a rut and at a 3-month low of $1,445.68 before yesterday’s jump.

However, many traders see this latest move as smoke and mirrors. RJO Futures market strategist, Eric Scoles said “I’m still bearish gold in the near term, but I suspect it will require more positive presidential comments or headlines regarding tariffs and trade to push gold below what could be firm resistance at $1,450… “Should December gold close below that point, I’d expect the next target to be $1,425”.

Josh Graves, another market strategist at RJO Futures also is not too optimistic of gold saying “I do not feel like gold has enough juice to get us back $ 1,550 and beyond if we see softer economic data. We need a break from the norm for the actual direction.”

Gold is definitely moving, we just don’t know where it will be headed.

RJOF Editorial Team