Gold Futures Commentary: Keep A Close Eye On S&P Futures If You’re Trading Gold

Despite our previous assessment of gold’s near-term uptrend being broken, the precious metal is making a serious argument for the upside with a rapid deterioration occurring in U.S. equities.  Gold is flexing its negative correlation with the S&P futures as investors run to staple safe havens.  The test will be April 13 highs and the highly psychological $900/oz level.

If gold can manage to climb comfortably above these barriers, we could see the rally pick up speed in the near-term.  A large movement to the upside backed by large volume would make the uptrend argument more convincing.

Meanwhile, gold’s strength indicates further weakness in U.S. equities, and if the precious metal should leap out of resistances, this movement could coincide with a brisk selloff in the S&P futures.  Therefore, keep a close eye on the S&P futures if you decide to dabble in gold.

Fundamentally we find resistances of $894.37/oz, $897.24/oz, $900.41/oz, $904.45/oz, and $909.06/oz.  To the downside, we see supports of $890.64/oz, $887.21/oz, $884.54/oz, $880.71/oz, and $877.70/oz. Gold is currently trading at $892.85/oz.

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