Gold Higher on Equity Volatility and Crypto Market Plunge
Gold settled higher Tuesday starting the week in positive territory despite the dollar also finishing positive. The major stock indices started the session positive but moved consistently lower throughout the day as underwhelming earnings from Material and Energy companies dragged indices lower. This also corresponded with an uptick in the VIX volatility index supporting Gold as the safe haven asset. Bitcoin plunged today, now down over 45% from the December highs, with the other cryptocurrencies also seeing large losses as well. Bitcoin is often seen as an alternative safe haven asset, so its sharp decline supports Gold prices.
March silver futures settled up to $17.189 a troy ounce, April platinum futures rose to $1,004.90 a troy ounce, while March copper futures settled up to $3.2195 per pound. March Palladium futures retraced from an all time high on Friday down to $1,088.15 a troy ounce.
For February gold, an open in the next session above the pivot of $1,338.10 would show near term resistance at $1,344.00 while a breakout above this level would see longer term resistance at $1,351.00. An open below the pivot would have near term support down at $1,331.10, and a sell off below this would show longer term support at $1,325.20.
Bullion on Bullion.
** Call me for a complimentary consultation on any of your future and futures needs **
Michael Bullion, CAIA
Senior Technical Analyst
Walsh Trading, Inc.
Direct: 312.985.0156
888.391.7894
Fax: 312.256.0109
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.