Gold Futures Ease on Strong Equities Market

Yesterday gold topped an 8-week high closing at 1279.4. While still considered in bullish territory as its trading nearly 30 points above its 200 period moving average, Gold is taking a backseat today as traders favor riskier investments.

Meanwhile the Dollar is trading at intraday lows not seen since June of 2016. Typically, the Dollar and Gold exhibit an inverse relationship, as the Dollar strengthens traders tend to lean away from safe haven investments & vice versa. However, with the CBOE Volatility Index (VIX), recovering from historical lows, the attention appears to be on riding the bullish stock market wave.

One would assume with a roaring stock market continuing to record higher highs combined with record low unemployment levels, that the Dollar would follow suit. However, the continuous indecision in Washington surrounding healthcare, tax reform & infrastructure is plaguing the greenback from gaining any momentum.

The above chart, created for free using the NinjaTrader platform & end of day Kinetick data, showcases the daily December Gold Futures (Yellow), and September Dollar Index Futures (Dark Green). Viewing the pair of futures overlaid on the same chart panel makes it easy to spot areas correlation typically not seen with this popular duo.

Start to chart and monitor Futures, Forex, Equities and Indices by downloading NinjaTrader for FREE.