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Where Is Gold Going?

by Frank Kaberna| Tips & Strategies

Gold’s summer, one of its most volatile in decades, has included a 10% rise, high prices not seen in decades, and multiple short-term outliers in both directions. And while the dog days are over, gold’s activity has not ceased and there’s no telling whether the commodity will make new highs or retreat as gold bounces around a relatively confined range.

Gold
Source: dxFeed Index Services (https://indexit.dxfeed.com)

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Don’t Sleep on Silver

When it comes to summer movement, silver’s been no slouch either. In fact, gold’s fellow metal has witnessed even greater volatility among these high prices. Traders can go to Small Precious Metals futures (SPRE) for a combination of the two that misses neither the all-time highs in gold nor the increased action in silver.

Silver
Source: dxFeed Index Services (https://indexit.dxfeed.com)

Next Move in Precious Metals

Instead of trading on a guess as to where gold and silver are headed in the long term, some traders have found recent success in merely taking the other side of short-term metals moves exceeding 2% (about 1.50 or $150 in SPRE futures). With prices of 2,000 and 1,800 looking equally probable in gold, it might make more sense to trade both sides with smaller futures.

Daily Return
Source: dxFeed Index Services (https://indexit.dxfeed.com)

© 2020 Small Exchange, Inc. All rights reserved. Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information in this advertisement is current as of the date noted, is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading futures involves the risk of loss, including the possibility of loss greater than your initial investment.

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About Frank Kaberna

Frank Kaberna is the head content strategist at the Small Exchange. He produces everything from brochures to videos that inform on the Small Exchange’s products. After earning a mathematics degree from the University of Michigan, Frank traded interest rates at the Chicago Board of Trade. He then worked on the tastytrade Network as a content producer and on-air talent before landing at the Small Exchange.

Risk Disclosure

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.