Blue_Line_Futures

Gold, How High Can it Go?

COMEX_DL:GC1!   Gold Futures
Gold (June) / Silver (May)

Gold, yesterday’s close: Settled at 2351.0, up 5.6

Silver, yesterday’s close: Settled at 27.807, up 0.304

Gold futures have now set a fresh record high for the eighth straight session. Although Silver is well below its 1980 and 2011 record highs of $50, the underlying strength exuded in recent sessions is certainly nothing to ignore. The first task for Silver is clearing and holding above what has become a psychological barrier at $30. Days like yesterday, where what feels like a precipitous drop is quickly reversed back into positive territory, are likely going to become more of the norm, but with wider ranges, and doing so is an exhibition of such underlying strength. Still, risk management is key and that is why our trade desk is here to help, always feel free to reach out.

Gold is in unchartered territory, therefore, we are using extension levels from multiple historical ranges, and it is trading into a sticky spot redefined by 2366.1-2372.5 as today’s pivot and point of balance and 2380.2-2384.5 as major three-star resistance. With Silver, continued resilience above a new handle (28 versus 27) should pave the way for a test of major three-star resistance at 28.52-28.57 on the session. From there, we brace for tomorrow’s CPI data.

Bias: Bullish

Resistance: 2380.2-2384.5***, 2400**, 2466.5***, 2539.3-2560.1****

Pivot: 2366.1-2372.5

Support: 2348.1-2351***, 2344.3-2345.4***, 2321.7-2325.3***, 2315.7**, 2298.7-2299.6***, 2285.7-2286.2***, 2279-2281.8***

Silver (May)

Resistance: 28.20**, 28.52-28.57***, 28.71-28.90**, 29.22***, 29.88-30.35***

Pivot: 27.99-28.01

Support: 27.80-27.87**, 27.34-27.51***, 26.93-26.97***, 26.40-26.48***

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*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.

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