??? Fundamentals
Gold futures have stabilized above the 1750 level, unable to garner enough momentum to attack the 1800 mark. While Gold has found strength in fears over the EU debt situation, the same crisis figures to slash demand for commodities. The slower growth projections could act as a barrier to higher Gold prices. The US Dollar has also firmed against the Euro in recent sessions. If the Dollar firms against the Euro, this could have a negative impact on the Gold market. The Commitment of Traders report shows net speculative long positions of over 280k contracts, which makes Gold vulnerable to long liquidation.
?? Technical Notes
Turning to the chart, we see the December Gold contract consolidating just above the 1750 level. The preceding move higher suggests that prices may have a slight upward bias. The next upside barrier may be found at the 1800 level. The RSI remains overbought, suggesting the market may continue to consolidate or, possibly, pull back.
————————————————————————————————
Disclaimers
This article is provided for informational purposes only. No statement in this article should be construed as a recommendation to buy or sell a security or to provide investment advice. The content provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness. optionsXpress makes every effort to provide timely information to its recipients but cannot guarantee specific delivery times due to factors beyond our control.
Derivatives involve substantial risk and are not appropriate for all investors. Please read the “”Disclosure Statement for Futures and Options”” prior to investing in futures or options.
For investments using a straddle or strangle options strategy the potential loss is unlimited. Multi-leg option strategies are subject to multiple commissions. Profits may be eroded by the commission expended to open and close the positions and other risks apply.