Gold futures in the December contract is currently trading at 1,523 an ounce after settling last Friday in New York at 1,529 down slightly for the trading week experiencing high volatility as I am currently not involved, but I do have a bullish silver position which has been mirroring gold to the upside.
If you are long a futures contract, I would place the stop loss under the 2 week low standing at 1,503, however for the bullish momentum to continue prices have to break the September 4th high of 1,566 in my opinion.
Trade talks between the United States and China will begin once again in October as that put pressure on gold prices in yesterday's trade also sending the stock market sharply higher as money flows entered equities and out of the precious metals which have been used as a flight to safety.
In my opinion, I still believe gold and silver will continue their bullish trends as negative interest rates around the world will continue to support the precious metals sector as interest rates are going to remain extremely low for a long time as I see no reason to be short gold.
CHART STRUCTURE: SOLID
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