December Gold Futures Consolidate Near $1975.00

It’s been a choppy month for December gold futures. Following a historic July rally, bullion hasn’t been able to sustain trade above the $2000.00 threshold. In fact, since the early-August sell-off, prices have rotated between $1900 and $2000. While gold remains in bullish territory, it appears that investors are beginning to favor risk assets going into the fall season.

Earlier today, the weekly 3 and 6-month Treasuries auctions were held. Yields came in mixed, with the 3-month ticking higher to 0.105% and the 6-month falling to 0.115%. Neither auction was overly dramatic, with rates holding relatively firm.

On the economic news front, tomorrow is going to be much more active than today. The ISM Manufacturing PMI (August), Construction Spending (MoM, July), and a speech from FOMC Member Lael Brainard is scheduled. So, although things are quiet right now, be ready for business to pick up in the coming 24 hours.

Currently, gold is trading in a non-committal fashion. Let’s dig into the daily technicals and see if we can spot a trade or two.

December Gold Futures Consolidate Near $1975.0

Right now, December GOLD is in somewhat of a logjam. Perhaps tomorrow’s ISM Manufacturing PMI report will shake the yellow metal from its slumber.

Here are the key levels to watch for December gold:

• Resistance(1): Daily SMA, 1997.2
• Support(1): 38% Retracement, 1974.3

Bottom Line: If we see December gold extend its weekly range upward, a shorting opportunity will come into play. Until Wednesday’s close, I’ll have sell orders in the queue from 1996.9. With an initial stop loss at 2000.9, this trade produces 35 ticks on a slightly sub-1:1 risk vs reward management plan.

ABOUT THE AUTHOR See More

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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