Daily Gold Commentary January 24, 2018
The U.S dollar tanked this morning after U.S. Treasury Secretary Steven Mnuchin said that a weaker U.S. Dollar is good for trade and is not concerned about it over the short term. This is now the worst start to the year for the dollar since 1987 giving strength to precious metals. U.S. existing home sales sank much further than expectations in December showing some stress for continued domestic growth. The lower than expected home sales coupled with the tariffs and possible China trade war earlier in the week added geopolitical uncertainty into the market boosting the safe haven demand for the metal as well. February Comex Gold finished the session at $1,356.30, a 4.5 month high. Similar moves upward were seen in the other precious metals and cryptocurrencies on the weakened dollar.
March silver futures settled up to $16.985 a troy ounce, April platinum futures rose to $1,015.80 a troy ounce, while March copper futures settled up to $3.2285 per pound. March Palladium futures were up to $1,106.35 a troy ounce.
For February gold, an open in the next session above the pivot of $1,352.10 would show near term resistance at $1,365.10 while a breakout above this level would see longer term resistance at $1,373.90. An open below the pivot would have near term support down at $1,343.30, and a sell off below this would show longer term support at $1,330.30.
Bullion on Bullion.
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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.