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Gold Futures Still Bearish

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December gold futures have corrected to near technical perfection this week as the market reached its 38.2% Fibonacci retracement level at $1300. The market is still bearish and only a close above $1300 reverses the trend back to bullish.

With the Commitment of Traders report still reflecting a wide disparity between the commercials and speculative longs, using rallies like the market has witnessed this week in order to establish fresh short positions is something we favor. The tap out level is a close above $1325. We have seen the gold futures market fool traders time after time with sharp corrective rallies and it would not be surprising to see this be the case again.

Chart from

As always we will be keeping a close eye on the outside markets and what is happening geopolitically to prevent being caught off guard. Ultimately bears will be looking for a close below last weeks low at $1262. A close below this level paves the way for a major selling wave to perhaps $1200ish. While a close over $1300 neutralizes the bear camp in the near term, the bulls prefer to see a close over $1325 for complete validation of a trend change.

My many years of trading futures markets does make a difference. Feel free to call or email me if you have any questions at 312.242.7986 and

Would you like to open an account with Teddy? Go to our interactive New Account application at Open An Account. It is fast, saves on postage and its green.

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. Past results are not indicative of future results or performance. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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