The Run To Gold Continues…….
Shain Vernier • 1 min read
The exodus to gold has continued throughout the U.S. session. Currently, December gold futures are trading at 1344.5, challenging Monday’s high of 1345.5. This week’s gold gap we talked about yesterday was tested and filled early on in the trading day.
As my colleague Arslan discussed much earlier in the session, U.S./North Korea tensions are driving the volatility facing this market. Any reaction from President Trump against North Korea will bring even more interest to the gold market.
Gold Is Visually Attractive; Gold Mining Is Not!
Filling In The Gap
Today’s session has told us a lot about the sentiment regarding gold, as most traders are limiting risk due to geopolitical conflict. A quick test of yesterday’s gap gave way to an immediate rally throughout Tuesday’s U.S. session.
December Gold Futures, Daily Chart
The 50 million dollar question is how high will gold go? As of now, the answer remains to be seen. But, the louder saber-rattling between the U.S. and North Korea gets, the higher the price of gold.
Here is the technical roadmap:
1350.0 is coming into view
The 38% retracement of the current bull run at 1329.0 held
Monday’s gap on open was tested and filled.
Overview: Today’s test of the gap was a great short trade for December gold futures. Kudos to any and all that got it. Along with the rest of the world, I have a long bias towards gold. The next few sessions will give some clues on the strength of this uptrend.
For now, the news cycle will dictate everything in the gold market. If you are holding open positions, be sure to use protective stops!