Can Gold Futures Hold Support?
Technical Momentum Weakens
Gold Futures hit an all-time high on May 20th, 2024, at $2,454; since then, they have corrected and consolidated. From a long-term perspective, futures give us a mixed signal, recently dropping below the 50-DMA at $2,373 but remaining well above the 200-DMA at $2,153. The technical perspective shows momentum studies decreasing, with stochastics correcting back into oversold territory and DMI—just above DMI+. Short-term traders continue to monitor the 9-day moving average, trading below the 18-day moving average. At the same time, the Average True Range sits at 37/day.
Tailwinds Continue to Develop
With an 8% chance of a July rate cut, according to the CME FedWatch Tool, traders are focused on September; swaps are pricing in a 54% chance that the Fed will make its first interest rate hike in the cycle.
Geopolitical tensions, rampant fiscal spending, and central bank buying have been the main drivers and have significantly propelled Gold prices in 2024.
Industrial Metals Strengthen
The performance in the Precious Metals space remains robust and has continued to spill into the industrial complex, a testament to the strength of this sector. Traders continue to monitor manufacturing, Chinese Economic data, and the U.S. economy, which have recently driven copper futures back over 4.50/pound and Silver over 29.50/oz.
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CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Gold Futures hit an all-time high on May 20th, 2024, at $2,454; since then, they have corrected and consolidated. From a long-term perspective, futures give us a mixed signal, recently dropping below the 50-DMA at $2,373 but remaining well above the 200-DMA at $2,153. The technical perspective shows momentum studies decreasing, with stochastics correcting back into oversold territory and DMI—just above DMI+. Short-term traders continue to monitor the 9-day moving average, trading below the 18-day moving average. At the same time, the Average True Range sits at 37/day.
Tailwinds Continue to Develop
With an 8% chance of a July rate cut, according to the CME FedWatch Tool, traders are focused on September; swaps are pricing in a 54% chance that the Fed will make its first interest rate hike in the cycle.
Geopolitical tensions, rampant fiscal spending, and central bank buying have been the main drivers and have significantly propelled Gold prices in 2024.
Industrial Metals Strengthen
The performance in the Precious Metals space remains robust and has continued to spill into the industrial complex, a testament to the strength of this sector. Traders continue to monitor manufacturing, Chinese Economic data, and the U.S. economy, which have recently driven copper futures back over 4.50/pound and Silver over 29.50/oz.
tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.