DC deadlock is great for gold: Pro

Dario Pignatelli | Bloomberg | Getty Images

Face it—Washington will take its standoff down to the wire. And the shutdown and debt ceiling debate should end up being a golden opportunity.

Gold remained quiet on Sunday night. This, after it traded in a range of over $20 on Friday that tested $1,326, the highest level since Tuesday, as it ran stops through from the mid-week highs. With a failure to follow through, gold settled to a floor close of $1,317.60.

(Read more: Gold edges up as US shutdown drags on, debt limit looms)

Through Friday's session and into Monday, gold has found support at $1,304.10 to $1,306, as it failed to chew through this level to press new lows.

With Washington still in deadlock, a weaker equity market has helped support gold. Fear is keeping gold above the $1,300 level. A close above $1,323.50 is needed to signal a consolidation higher, and would point toward a test of $1,338 to $1,340.10.

(Read more: Why the shutdown could mean no tapering this year)

Only a close below $1,304.10 to $1,306 will signal a follow-through lower. Still, even if we get below $1,300, we will look for the $1,291.50 level to provide support for this market.

Rich Ilczyszyn is founder and CEO of iiTrader. Follow him on Twitter @iiTrader.

Watch "Futures Now" Tuesdays and Thursdays at 1 p.m. EDT exclusively on FuturesNow.CNBC.com!

Like us on Facebook! Facebook.com/CNBCFuturesNow.

Follow us on Twitter! @CNBCFuturesNow.

Contact Futures Now

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.