$1500 In View For December Gold
December gold futures are on the march north once again today, posting intrasession highs above the $1485.0 level.
Perhaps the largest beneficiary of the trade war fallout from the past week has been bullion. December gold futures have rallied more than $70 amid the chaos and are closing in on the vaunted $1500 level. Gold hasn’t traded north of $1500 since 2012; can lower bond yields and FED rate cuts send bullion past this key psychological level? At the moment, signs point to yes.
$1500 In View For December Gold Futures
December gold is on the march north again today, posting intrasession highs above the $1485.0 level. Bids have hit the market consistently this week in response to turbulence in U.S. equities and devaluation of the Chinese yuan.
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Until we see any meaningful pullback out of gold, there will be one huge number on my radar:
- Resistance(1): Psyche Level, $1500.0
Bottom Line: At least for the first time through, I will be looking to short December gold from just beneath the $1500.0 handle. Until elected, sell orders from 1498.4 will be queued up and ready to go. With an initial stop at $1501.3, this trade produces 25 ticks on a slightly sub-1:1 risk vs reward ratio.
Given the investor angst over the U.S./China trade war and growing safe-haven appeal, a near-term test of $1500.0 is highly probable. If we see a weak close on Wall Street later this afternoon, this level may be tested as early as the forthcoming U.S. overnight.
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