Gold Looking To Stretch Daily Win Streak To Five
Shain Vernier • 1 min read
Things are looking up for the gold bugs as prices are on the bull for the fifth-straight session. Safe-haven appeal is growing amid turbulent equities markets and sudden questions surrounding the future of the USD. As a general rule, markets hate uncertainty. With growing concerns over U.S. economic growth and equities pricing for 2019, December gold futures are attempting to establish a foothold near 1225.0.
Earlier in the session, there were a few minor economic events worthy of note. During the U.S. pre-market, the NAHB Housing Market Index (Nov.) came in at 60. The number 60 doesn’t mean much, but the fact that it was well below expectations and the previous release does. The NAHB estimates future home sales and new construction, both viewed negatively by today’s report.
A few minutes ago, 3 and 6-month U.S. T-Bills were auctioned, with yields coming in mixed. The 3-month was up to 2.345%, while the 6-month fell to 2.455%. The fall in the 6-month T-bill reinforces the assertion that guaranteed FED rate hikes are not a certainty for 2019.
December Gold Futures
As losses in the U.S. indices steepen, December gold futures are holding firm in a tight daily range. Be on the lookout for bullish late-session participation for bullion.
Overview: At press time, the 62% Current Wave Retracement (1223.0) is setting up to be a catalyst for heavy-two way action. Given the ongoing chaos in U.S. equities, it will be a surprise if this area proves to be valid topside resistance. This market is poised to move higher by the end of the Tuesday session.