Commodity Chart Of The Day: Gold

Includes: GLD, IAU
by: Matthew Bradbard

Commodity Chart Of The Day

Daily Gold

(click image to enlarge)

I had been expecting a move lower in the gold, but that was based on the premise the U.S. dollar would continue to appreciate. With the dollar index failing at 84.00, gold and other metals are catching a bid. I have shifted from bearish to neutral now, with prices above $1600/ounce in August futures, as seen above.

As long as the greenback is moving south, gold should move north. Use the Fibonacci levels as your upside targets. I see little resistance until $1665/1670.

I like the idea of straight bull call spreads or bullish ratio spread out until December. My suggestion for futures trades would be to scale into the trade and trail stops staring at $1550 in the August contract.

Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.