June Gold Futures Can’t Hold 1300.0

Posted Tuesday, May 14, 2019 by
Shain Vernier • 1 min read

Turbulent news cycles are almost always good for bullion and this week certainly hasn’t disappointed. Monday featured a bullish break in June gold futures, driving prices north by $14.00 per ounce. Now, it appears as though sellers have stepped in at 1300.0, with price falling to the vicinity of 1295.0.

At this point in the session (about 11:30 AM EST), U.S. stocks are in a position to regain a decent portion of Monday’s losses. Subsequently, gold looks ready to give back yesterday’s gains and settle beneath 1300.0. As we roll into the late-U.S. trading day, be on the lookout for enhanced volatility to become the rule for equities and bullion ahead of the closing bell.

June Gold Futures Reject 1300.0

With so much going on in the geopolitical realm, it is tough to determine a finite direction for gold. Tariffs, as well as tensions in Saudi Arabia and Iran have breathed some life into the long-term outlook for bullion. Nonetheless, prices are once again falling, an all-too-common sight for gold bugs throughout 2019.

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

Here are a few levels to watch as the action unfolds today:

  • Resistance(1): Psyche Level, 1300.0
  • Support(1): Bollinger MP, 1288.2

Overview: The 1300.0 area is going to tell the tale for June gold futures in the short-term. If the market finds some bids above 1300.0, then an extended bull run to 1310.0 or 1325.0 may be in the cards later this week.

If you are going to be trading GOLD in the current super-charged news cycle, it will be important to regularly monitor global news. The U.S./China trade standoff is the key market driver of bullion at the moment; any big developments in this area will rapidly send gold pricing directional.

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