Gold futures in the December contract settled last Friday in New York at 1,523 while currently trading at 1,537 up nearly $28 for the week ending on a positive note all because it certainly looks like a trade war with China is going to escalate.
I am currently not involved in gold, but I do think higher prices are ahead and if you are long a futures contract continue to place the stop loss under the 2 week low standing at 1,488 as an exit strategy as I still think prices break the 1,600 level possibly in next week's trade. I have a bullish silver trade which continues to move higher weekly as I see no reason to be short the precious metals as the U.S. stock market is down another 450 points as the commodity markets remain weak across the board especially the agricultural sector.
Volatility in gold is exceptionally high, and that will continue for the rest of 2019 as prices are still trading above their 20 and 100-day moving average, however for the bullish momentum to continue prices have to break the April 13th contract high of 1,546, and I think that situation is going to occur so stay long if you are involved as I see no reason to take profits.
CHART STRUCTURE: SOLID
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