GO
Loading...

These Are the Levels to Watch in Gold: Pro Trader

AP

Gold recovered from a rocky session on Friday to trade back above $1,470 an ounce this morning. After failing to retest the session's $1,484.80 high, gold quickly broke back down, as a fear of failure allowed the bears take control.

The metal sold off in a hurry, running through stops and below major support at $1,455.80 to $1,458.50 an ounce. This brought it to the next support level, at $1,447.20. At that point, investors once again found value and were able to help gold finish the week back above $1,460.

Last week, Goldman Sachs' exit of its short bet on gold, coupled with the increase in physical demand, helped bullion recover from its April 16 low. However, gold will need to get back above $1,500 an ounce before investors get the psychological sense that it has bottomed.

(Read More: Goldman Flip-Flops on Gold)

The range trade that I posted Friday is still what I consider the main trade to be as this market consolidates. Namely, I see the market staying between $1,437 and $1,487.50. Until gold can close above or below this band, traders must play the levels on either end of the range.

Watch "Futures Now" Tuesdays & Thursdays 1 p.m. ET 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.