Futures Roundup
Holding Pattern
Fundamentals
Gold futures have been in a holding pattern since coming off all-time highs. Many traders have been taking profits ahead of year end, which has kept prices at bay. Outside markets have been just as choppy, and the indecision has spilled over to the precious metals market. The US Dollar Index has been trading sideways, and equities seem to have had their "Santa Rally" earlier this month. Gold fundamentals remain strong.
Many traders remain uncertain as to the state of the global economic recovery, and the present state of the sovereign debt market has kept traders on edge. Investment in Gold ETFs remains as strong as ever, with assets at all-time record levels. Traders may have to wait until January, when the year-end machinations of the market subside, to get a clearer picture of where the Gold market may be heading in the intermediate-term.
Technical Notes
Turning to the chart, we see prices grinding it out between 1360 and 1400. Prices have been gravitating toward the 20-day moving average in recent sessions. So far, the market has held the 50-day moving average. A breakdown below the average could signal a negative turn in the market. The RSI indicator is diverging from the price, which hints at possible weakness in the near-term.
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About Mike Zarembski
Born in the grain pits of the Mid-America Commodity Exchange (MidAm) in the early 1990s, Mike's futures career soon shifted to the offices of TD Waterhouse in 1999, followed by Xpresstrade in 2002 and eventually optionsXpress in 2007.
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