Gold Settles at 2018 Lows and then Rallies

Michael BullionCurrencies, Precious Metals

Gold fell today hitting weekly lows and settling at the lowest level since the end of 2017.  After settlement, trading swung back in gold’s favor erasing the losses for the trading session.  This was due largely from the tariffs announced by President Trump on aluminum and steel.  The tariff news hit the U.S. Dollar dropping it into negative territory, with the resulting positive move for gold.

The other metals fell alongside gold as May silver futures settled down to $16.276 a troy ounce, April platinum futures dropped to $957.80 a troy ounce, May copper futures settled down to $3.123 per pound, and June Palladium futures fell to $973.20 a troy ounce.

For April gold, an open in the next session above the pivot of $1,310.07 would show near term resistance at $1,316.53 while a breakout above this level would see longer term resistance at $1,327.87.  An open below the pivot would have near term support down at $1,298.73, and a sell off below this would show longer term support at $1,292.27.

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Michael Bullion, CAIA

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Walsh Trading, Inc.

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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.