rounded corner
rounded corner
top border

Daily Gold Spread


Bookmark and Share

As noted on Friday's report, gold and silver experienced an intraday reversal which most likely meant that both markets would experience follow through buying in the next few sessions. That is exactly what has occurred to start this week. December gold settled at 1293.8 and is currently up $18.90 for the week while silver settled up at 1720.5 and is up currently 41.5 cents. As gold and silver have experienced follow through, the Dollar has also moved lower from last Friday's highs. This has aided precious metals in the interim while energies have gone bid to start the week as well. Tomorrow the market will get a look at the minutes from the last FOMC report which should provide the dollar with some support in my view as the Fed has become more hawkish in recent weeks. Geopolitical worries have ratcheted up another notch as well on reports U.S. President Donald Trump will stop at the North Korea-South Korea demilitarized zone to deliver a strong anti-North Korea speech, during his Asia trip next week. Also, U.S. Defense Secretary James Mattis reportedly told his Army officers to be ready, in case U.S.-North Korea negotiations fail.Also of concern in my view are reports or worries from the European Union due to its stock markets being seen as "shaky" regarding Catalonia possibly seceding from Spain. The Catalan regional president gave a speech Tuesday, in which he said it is his intention to at some point separate Catalonia from Spain, per the recent voter referendum. In short, a lower Dollar, geopolitical concerns and a technical reversal have pushed metals higher over the last 2.5 sessions. China is also back after a week-long holiday with physical buying that is anticipated to pick up again heading into November from both the Indians and Chinese.

Watch the Dollar's reaction after the Fed minutes release tomorrow and then look to buy any dips into the weekend. With Trump in Asia next week, I don't see much in the way of major selling in the metals markets until that trip is concluded. Just my opinion here, but here's some technical levels to watch. For December gold, near term support sits at 1285.6. A close under and the 100 day is next at 1279.4 and then the weekly pivot number at 1274.2. Resistance is up at 1296.4, then the 50 day at 1299.6. A close over the 50 day moving average and the next level to the upside is 1317.1. For December silver, support sits at the 50 and 200 day at 17.14 and 17.135 respectively. A close below and the 100 day sits at 16.90. A close under 16.90 and 1668.5 is the next support level for the remainder of the week. Resistance is up at 17.26 and then up at 17.44.

Please join me for a weekly webinar on the grain market each Thursday at 3 pm central time. Signup is free and a recording link will be sent upon signup.

Sign Up Now



Recent articles from this author



About the author


Sean Lusk is a registered commodity broker and Director of the Commercial Hedging Division of Walsh Trading in Chicago. Sean began in the business as a runner on the trading floor during summer breaks from college in 1993. Upon his graduation from Southern Illinois University at Carbondale in 1996, Sean began his career on the trading floor of the Chicago Mercantile Exchange (CME). Overseeing billions of dollars of transactions working as a clerk in the Eurodollar pit, Sean took the next step and became a floor broker and member of the CME in 2003. He handled customer orders for banks and investment houses from all over the world from inside the Libor pit at the CME.

Now, at Walsh Trading, Sean utilizes his experience in the marketplace and his professional client service skills to aid and assist customers in their trading endeavors.  

He writes daily and weekly commentaries focusing on both the Precious Metals and Agricultural Markets along with related market activity.

Sean has been quoted in various media outlets discussing futures markets. 

These include:

 

  • Futures Magazine
  • Reuters
  • Forbes
  • Kitco
  • Nikkei Press
  • CCTV.com

 

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy