gold futures

Bidders Defend 1500.0 In Gold

Posted Thursday, September 12, 2019 by
Shain Vernier • 1 min read

1500.0 is shaping up to be the 5000-pound elephant in the room for December gold futures. This level has generated hot two-way action for most of the week, with bidders thus far winning the battle. However, that may be soon to change. With the FOMC Meeting coming up next week, it appears interests are shifting toward the rally in equities. 

As we roll into the weekend break, there are two key events scheduled for Friday that may shake up the GOLD markets. U.S. Retail Sales (August) and the Michigan Consumer Sentiment Index (September) are the last primary market drivers ahead of Wednesday’s FED Interest Rate Announcement. If they underperform expectations, traders are likely to bet heavily on an overtly dovish FOMC. And, that may send the U.S. indices to new all-time highs and bullion beneath 1500.0.

December Gold Hanging Tough Above 1500.0

For better than a month, bidders have defended the 1500.0 handle in December gold with vigor. Now, it appears that we may be at a fork in the road. 

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

Here are two levels to watch for the remainder of the session:

  • Resistance(1): Daily SMA, 1529.1
  • Support(1): Bollinger MP, 1514.7

Overview: On the daily chart above, late August brought a crossover of the Daily SMA and Bollinger MP. This is key, as the previous crossover on August 5th was the precursor to a $100+ rally in December gold. If the latest September 4th SMA/MP crossover is any indication, sentiment has shifted and the gold bears have awoken from hibernation.

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