Chart View: Gold Futures by Jeff Gilfillan
Once again, the previously mentioned zone between 1420-1530 front month CME Group COMEX GC futures served as another transitional zone and the trade wasted no time advancing towards the next value levels. The month of August opened at 1411.30 and closed at 1519.10. The transition was over a 4-day period that culminated on August 7th which was the highest volume day for the front month contract since 2018 and the highest so far for the Dec 2019 contract.
The commitment of traders report (see below) as of 09/03 showed “Managed Money” (futures only) net long positions at extremes. This was also the case the previous week. Market range highs were hit in each week around the time of the “as of date” but prices retraced down to the lower end of the current range by the time the COT report was published end of the week. The managed money hit extreme levels, but the producer net shorts still are well below intermediate and long-term extremes.
No doubt volatility should continue. The trend is bullish, but charts show minimal value support in the current range down to $1400. Futures spent two years above 1530, topping out over $1900 between 2011-2013. On a relative basis there we [ed.: should this be “was?”] little value built over 1530 and the charts are heavy. A long-term potential upside washout area to look out for would be around 1650.
Be patient as a spec and liquid as a hedger.
Trade Gold Futures Globally with Phillip Capital.
The bulk of our US FCM’s gold futures volume is through the CME Group. We are a full clearing member of the CME Group. Our US FCM and affiliates of Phillip Capital Group also offer traders access via memberships to other global exchanges offering gold futures including TOCOM, SGX, DGCX, ICE and HKEX.
CME Group – CME Gold Futures Continuation Weekly
Chart: Track N’Trade
Futures trading is not for everyone. The risk of loss in trading can be substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.
CME Group – CME Gold Futures Continuation Monthly
Chart: Track N’Trade
Futures trading is not for everyone. The risk of loss in trading can be substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.
Source: CME Group – Commitment of Traders powered by QuikStrike
Trading in futures products entails significant risks of loss which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies cited herein is not necessarily indicative of future performance. The information contained herein is provided to you for information only and believed to be drawn from reliable sources but cannot be guaranteed; Phillip Capital Inc. assumes no responsibility for errors or omissions. The views and opinions expressed in this letter are those of the author and do not reflect the views of Phillip Capital Inc. or its staff.