Gold Attempts To Stretch Winning Streak, 1200.0 In Play - Forex News by FX Leaders

Gold Attempts To Stretch Winning Streak, 1200.0 In Play

Posted Tuesday, August 21, 2018 by
Shain Vernier • 1 min read

The more things change, the more they stay the same. Today’s gold market is certainly an example of that notion. After a brutal sell-off last week, bullion has returned to the key psychological level of 1200.0. This is a continuation of the year-long pattern in this market — sell-off, consolidate, sell-off. As of now, it looks as though traders are seeking fair value in the 1200.0-1175.0 range.

After early strength, bullion prices are returning to Monday’s range. Let’s dig into the daily technicals for December gold futures and see if we can spot a trade or two.


December Gold Futures: Technical Outlook

At press time, commodities are selling off from intraday highs. WTI crude oil has taken a bearish turn and December gold futures are following suit. In the event gold closes negative, one has to wonder if a selloff is coming tomorrow in front of the FOMC.

December Gold Futures (GC), Daily Chart
December Gold Futures (GC), Daily Chart

Here are the levels to watch for the next 24 hours:

  • Resistance(1): Psyche Level, 1200.0
  • Resistance(2): 62% Current Wave Retracement, 1203.3
  • Support(1): Swing Low, 1167.1

Overview: The failure for December gold to break above the 62% current wave retracement is huge for this market. Bullion is threatening to close in the negative, which may bring a selling opportunity into play. In the event we do see a negative close today, then a short position beneath the session low will be a great way to join the prevailing downtrend.

It is becoming redundant, but tomorrow’s FOMC Minutes is likely to move markets. Today’s weakness in safe-havens may continue in the wake of hawkish statements from U.S. FED members. As this release nears, look for quiet markets and a possible bearish continuation toward the Swing Low (1167.1) for December gold futures.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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