By Peter Aan.
The action Sunday night and early Monday shows little of the volatility that we’ve seen in recent weeks, except for Platinum, which is sharply lower this morning. Here’s my take as we begin the week.
After a lukewarm close on Friday, Gold is a little lower this morning. Barring a close above Thursday’s high of 1146.00 (December contract), I think this market will work lower. If we do close above 1146.00, the recent high of 1169.80 will be ripe for testing.
If we should close above Thursday’s high of 14.745 (December), a trend change to the upside is signaled. Otherwise, I continue to favor lower prices.
Friday’s close above 1009.10 (October) signaled higher prices and a test of the recent high of 1038.50 (October). The substantial selloff on this Monday morning indicates that the market may have other plans. As I write this, we still have an inside day. If Friday’s low is taken out, especially on a closing basis, this market may have turned on a dime and be heading lower.
Friday’s strong close signaled a trend change to the upside. If so, the first point to watch is the August 21 high of 625.15 (December) and the mid-August high of 626.50.
Peter Aan joined Dillon Gage in 1983, and is currently a metals trader for our metals division. He is the author of numerous articles for Futures magazine and Stocks and Commodities magazine. He is the author of The Relative Strength Index: A Comprehensive Research Report and a co-author of Trading Tactics: A Livestock Futures Anthology, published by the Chicago Mercantile Exchange.