“Risk-Off” Is In Vogue, Gold Pushes Toward 1250.0
Gold is posting a strong rally as investors are looking for a port in the storm. Volatility and bearish action in the U.S. indices have stock pickers reevaluating long-term prospects. A hawkish FED and non-committal ECB have currency traders gameplanning for Q4. Potential outcomes from the U.S. Midterms have everyone scratching their heads ― the beneficiary has been bullion.
December Gold Futures Technical Outlook
December gold futures have posted a nice week. Values are up around 150 ticks and bids are pushing this market toward the psyche level of 1250.0.
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Since the global equities panic of October 10th and 11th, the price of bullion has plodded north. Although there was a period of consolidation near the 1225.0 handle, buyers have consistently defended the month-long uptrend.
Bottom Line: A counter-trend scalp may set up later in the session for December gold futures. Sells from 1249.4 are an affordable way to play a short-term rejection of the 1250.0 level. With an initial stop at 1250.2 and 1:1 risk vs reward management plan, this trade produces a tight 8 ticks vs the intraday trend.
The December gold contract first began seeing consistent traded volumes back in June. The 62% Fibonacci retracement of the December contract’s 2018 range (1264.9) is a critical level. If bullion’s bull run continues, the area between 1250.0 and 1265.0 is going to be very important as the calendar year draws to a close.
Be on the lookout for excess volatility across the markets as the weekly closing bell draws near. Investors are especially skittish today ― we may be in for some big moves before the weekend break.
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nice one
A tremendous sell-off at 11:00 AM EST Friday drove this market to a moderately positive close and near-daily Doji formation. Be on the lookout for more volatility as October draws to a close.