Home » Gold futures trading » Gold futures – bullish trend continues

Gold futures – bullish trend continues

The question of course that everyone is asking at the moment, is how much longer can the current trend for gold continue as market analysts and commentators begin to suggest a strong reversal or even a crash for the precious metal as main stream news channels now beginning to report the price on a daily basis ? All I can say from a technical perspective on the daily chart for December gold futures, is that the current bull trend shows no signs of slowing down just yet, and indeed yesterday’s candle with its deep wick to the lower body which found support from the 9 day moving average, suggests the opposite. Indeed in early trading today, gold futures have continued higher once again, to trade at $1317.70 at the time of writing, having reached a high earlier in the session of $1322 per ounce.

The feature of yesterday’s candle with the low of the day bouncing off the 9 day moving average is always a strong signal that the current move is likely to continue, and with the 14 day moving average having provided the same degree of support earlier in the week, both are giving strong signals that the bullish trend is set to continue in the short to medium term. The fundamental picture is also helping to drive the metal higher, with continued dollar weakness, an uncertain economic outlook, and imminent quantitative easing in the US all helping to drive gold to new record highs. As such, remember the great Jesse Livermore, who always said when asked if a stock or commodity was over priced : ” there is never a price too high to buy, only the market price” – wise words, and advice worth following! ┬áMore recently many central banks have now declared a buy and hold strategy for their own bullion stocks which once again are helping to fuel demand, with China and other developing economies building their gold stocks as they convert their paper assets into more tangible investments.