Gold Futures are looking for a catalyst for a breakout
Technical Momentum Weakens
Gold Futures hit an all-time high in 2024 at $2,448 on the June futures contract on April 12. Since then, futures have corrected; however, gold remains firmly above the rising 50-day moving average at $2,269 and well above the 200-day moving average at $2094. The technical perspective shows momentum studies declining, with the 9-day moving average trading above the 18-day.
Stochastics are rising from oversold territory, and DMI - slightly above DMI+ , indicating that the bears are technically in control.
Tailwinds Continue to Develop
With a 9% chance of a June rate cut, according to the CME's FedWatch tool, traders are focused on September; swaps are pricing in a 65% chance that the Fed will make its first interest rate hike in the cycle.
Geopolitical tensions, rampant fiscal spending, and central bank buying have been the main drivers and have significantly propelled Gold prices recently.
Industrial Metals Strengthen
Performance remains strong in the Precious Metals space and has continued to spill into the industrial complex. Traders continue to monitor manufacturing, Chinese Economic data, and the U.S. economy.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Gold Futures hit an all-time high in 2024 at $2,448 on the June futures contract on April 12. Since then, futures have corrected; however, gold remains firmly above the rising 50-day moving average at $2,269 and well above the 200-day moving average at $2094. The technical perspective shows momentum studies declining, with the 9-day moving average trading above the 18-day.
Stochastics are rising from oversold territory, and DMI - slightly above DMI+ , indicating that the bears are technically in control.
Tailwinds Continue to Develop
With a 9% chance of a June rate cut, according to the CME's FedWatch tool, traders are focused on September; swaps are pricing in a 65% chance that the Fed will make its first interest rate hike in the cycle.
Geopolitical tensions, rampant fiscal spending, and central bank buying have been the main drivers and have significantly propelled Gold prices recently.
Industrial Metals Strengthen
Performance remains strong in the Precious Metals space and has continued to spill into the industrial complex. Traders continue to monitor manufacturing, Chinese Economic data, and the U.S. economy.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.