August Gold Futures Test 1350.0 - Forex News by FX Leaders
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June has been good to gold as investors have consistently flooded the market with capital. Since June 1st, August gold futures have rallied more than $45 per ounce amid heavy bidding. Last week featured a rush to safe-havens as trade war escalations spooked investors; this week’s flagging USD has bumped bullion higher. It seems that regardless of the fundamentals, gold is setting the stage for a Q3 and Q4 2019 rally.

At this hour (1:30 PM EST), the morning’s weak Non-Farm Payrolls report continues to dominate financial headlines. U.S. equities are trending higher, led by a 300 point gain in the DJIA. No doubt about it, the markets are pricing in several rate cuts for 2019 and gold is benefitting from a potentially devalued USD.

August Gold Futures Take Out $1350.0

For the first time since February, August gold futures have traded above $1350.0 per ounce. The key psychological level was taken out earlier today, around 10:30 AM EST.

August Gold Futures (CL), Daily Chart
August Gold Futures (CL), Daily Chart

Overview: Going into next week’s trade, exactly how bullion will behave remains very much a mystery. Nonetheless, we do know that the daily trend is up and that gold will benefit from both FED rate cut euphoria or plunging equities valuations. In short, GOLD is in a great position to hold its value or continue north over the coming five sessions.

Accordingly, buying into the daily bullish trend on a dip or pullback is going to be a great way to play the action. With a bit of luck, we will get a chance to do so during the Monday or Tuesday session. Until then, enjoy your weekend break and get ready for another active five days on the markets.

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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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