Trade Desk Client Note
Global Futures Market Review
YTD Gold Bullion Moves
Look for the pattern of buying-the-dip on Gold (XAU) to continue, and accept that news-headline related moves are dominating technical potential. The trend and outlook is mixed, but many times this year buying opportunities have come from those set-ups. The intra-day trading range is extreme and signals that massive volatility remains a constant threat.
Gold Bullion (XAU) YTD Daily Chart
The 100-day Simple Moving Average (NYSE:SMA) on gold is around 1727 and could offer support in the near-term for a move higher. The 50-day SMA is at 1705. Increases in Silver (XAG) margin requirements forced bullion markets to reverse lower to test support on each occasion they were announced this year.
The main bullion market moves lower have been margin-related, and most dips have been bought. Selling of resistance is likely to be seen if equity markets show strong weakness.