Gold Futures Trading Outlook - Tuesday 10/9

Gold futures (/GC Dec) suffered their 2nd straight daily loss on Monday, backing off from the vaunted $1,800 resistance level. Contracts, however, finished the day well off of their intraday lows ($1,768.20) to close at $1,777.60.

As the six-month daily chart below shows, gold futures are currently resting on support dating back to mid-August. Should it hold, it may set up another run at the one year high of $1,804.40 (November of 2011). If prices break the trend line to the downside, however, look for a retest of the nearest support level at $1,740. After that, no support comes into play until $1,720 and then $1,687.

One week high - $1,798.10. One week low - $1,765.70. One month high - $1,798.10. One month low - $1,720. Six month high - $1,798.10. Six month low - $1,526.70. One year high - $1,804.40. One year low - $1,523.90.