The Week Ahead: FOMC, Metals at All-Time Highs, March Corn Wheat Spread, Gold Swing Trading System, Levels, Reports; Your 6 Important Can’t-Miss Need-To-Knows for Trading Futures the Week of January 26th, 2026

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Cannon Futures Weekly Letter

In Today’s Issue #1275

  • The Week Ahead – FOMC, MAG Earnings, Metals All Time Highs!

  • Futures 101 – XRP, Solana, 1 ounce Gold & More are Now Available on CannonX

  • Cannon Edge – Your Futures Trading Map for the Week Ahead!

  • Hot Market of the Week – March Corn Wheat Spread

  • Broker’s Trading System of the Week – Gold Swing Trading System 

  • Trading Levels for Next Week
  • Trading Reports for Next Week

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Feb(#GC)

4868.80 4926.60 4959.00 5016.80 5049.20

Silver (SI)

— Mar. (#SI)

93.95 98.46 100.73 105.23 107.50

Crude Oil (CL)

— Feb (#CL)

58.93 60.09 60.67 61.83 62.41

 Mar. Bonds (ZB)

— Mar (#ZB)

114 22/32 115 2/32 115 11/32 115 23/32 116

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

fomc

It certainly looks like we’ll be seeing quite a bit of action in the markets next week. We have quite a few economic data points in addition to The Fed rate decision and if I am not mistaken, we have 4 of the Mag 7 stocks reporting out of 4769 earnings reports, the heaviest week of earnings in the cycle.

We’ll see you next week! Please enjoy a safe and memorable weekend.

 Earnings Next Week:

·        Mon. regional banks, Nucor

·        Tue. LVMH, UnitedHealthcare, Boeing, Texas Instruments, UPS, Northrup Grumman, GM, Seagate

·        Wed. MSFT, META, TESLA, IBM, AT&T, SBUX, ADP

·        Thu.  Apple, Visa, Mastercard, Caterpillar, Blackstone, Southern Copper Corp, Comcast, Lockheed

·        Fri. Exxon Mobil, Chevron, AMEX, Verizon, Charter Communications

FED SPEECHES: (all times CST)

·        Mon.  Fed

·        Tues.   Blackout

·        Wed. FED Rate decision and Presser

·        Thu.  None

·        Fri.   Bowman after market close

Econ Data: (all times CST)

·        Mon. Chicago Fed Nat Activity Index, Durable Goods, Dallas Fed Manufacturing Index

·        Tue. ADP Weekly, Redbook YoY, S&P Case Schiller, CB Consumer Confidence, Dallas Fed Svcs.,

·        Wed. EIA Crude stocks, FED Rate Decision, Presser follows

·        Thu. Balance of Trade, Jobless claims, Factory orders, Nat Gas Stocks,

·        Fri. Core PPI, Chgo PMI

Review below some Crypto contracts and new gold contracts!

Name

Exchange

Class

Exchange Symbol

CannonX Symbol

Liquidity

1-oz. Gold CME 1 Troy Ounce 1OZ M1OZ Very liquid: 10’s of thousands of contracts per day
10-oz. Gold CME 10 Troy Ounces MGC MGC Extremely liquid: 100’s of thousands of contracts per day
XRP CME 50,000 XRP XRP GXRP Illiquid: less than 1000 contracts per day
Micro XRP CME 2,500 XRP MXP GMXP Moderately liquid: 1,000-5,000 contracts per day
XRP CoinBase 10,000 XRP XRP XRL Looks extremely liquid: CoinBase XRP Price Page
Solana CME 500 SOL SOL SLC Moderately liquid: 1,000-5,000 contracts per day: CME Solana Vol. & Open Int.
Micro Solana CME 25 SOL MSL Moderately liquid: 1,000-5,000 contracts per day: CME Micro Solana Vol. & Open Int.

Introducing Cannon Edge — Your Daily Futures Snapshot

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

  • Current price and daily % change

  • 30‑day and 52‑week highs/lows

  • PROPRIETARY Short‑term and long‑term trend signals

  • Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQQ.

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Hot Market of the Week

Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

Free Trial Available

March Wheat – Corn Spread

The March Wheat – Corn Spread corrected after completing the second upside PriceCount objective. Now, the chart is attempting to resume its rally where new sustained highs would project a potential run to the third count in the 1.07 area.

  LEARN MORE ABOUT SPREADS!!

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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

t is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

Brokers Trading System of the Week

Edvardus – Breakout Gold Trading System

Market Sector: Metals

Markets Traded:   GC – Gold Futures

System Type: Day Trading

Risk per Trade: varies

System Description: Edvardus Breakout GOLD is a breakout swing trading strategy. It has passed robustness testing such as walk-forward analysis.

Broker’s Suggested Capital: $33,000

Developer Fee per contract: $250.00 Monthly Subscription

Get Started

Learn More

January 2026 summary below – full results since inception HERE:

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Disclaimer The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance is not necessarily indicative of future results.

System Trades Disclosure:

System Description

“System Description” is based upon information obtained from specific system marketing documents, system developers and/or system vendors themselves. While the information is believed to be reliable, we cannot guarantee its completeness or accuracy.

Actual Monthly Performance

The table and charts represent the monthly/quarterly/annual summation of actual trades based on system-specified contract(s) executed through Striker Securities, Inc. using the referenced trading system or system vendor for the stated time period. Commissions and monthly vendor fees are deducted from the tabulation. Results are based on 1 contract.

If a client trades 2 contracts his gain or loss is twice as displayed (and so on). This table is presented for information purposes only and is not a solicitation for the referenced system or vendor.

The purpose of this information is for clients to compare their brokerage statements to what is displayed on Striker’s site. Striker as a matter of policy has no ownership with the referenced system or vendor or any other trading system or vendor.

Past trade history may not be indicative of future results. The results indicated here may or may not be typical of the performance of this system and, ALTHOUGH WE BELIEVE THIS INFORMATION TO BE ACCURATE, CANNON TRADING COMPANY MAKES NO ENDORSEMENT OF THIS OR ANY SYSTEM NOR WARRANTS ITS PERFORMANCE. This is not the only trading system that Striker executes for its clients. Potential traders should carefully investigate, evaluate and compare trading systems before investing capital. Some or all trading systems may involve an inappropriate level of risk for potential traders.

It is the nature of commodity trading that where there is the opportunity for profit, there is also the risk of loss. In opening an account through CANNON TRADING COMPANY, Customer acknowledges and agrees that he/she will rely solely upon the information that CANNON TRADING COMPANYprovides to you. Thus, all prior third-party materials provided are superseded by the information and disclosures provided by CANNON TRADING COMPANY.

Important Information About this Trading System Analysis

Statistics, tables, charts and other information on trading system monthly performance are based on actual trading unless otherwise specified. Actual dollar and percentage gains/losses experienced by investors would depend on many factors not accounted for in these statistics, including, but not limited to, starting account balances, market behavior, developer fees, incidence of split fills and other variations in order execution, and the duration and extent of individual investor participation in the specified system.

While the information and statistics given are believed to be complete and accurate we cannot guarantee their completeness or accuracy as they results are key punched and subject to human error. Performance information is not the performance of a single account, but a compilation of several accounts over time, and is based on the physical trading ticket.

THIS INFORMATION IS PROVIDED FOR EDUCATIONAL/ INFORMATIONAL PURPOSES ONLY AND USED BY CURRENT CLIENTS TO AUDIT THEIR STATEMENTS TO STRIKER SITE. These results are not indicative of, and have no bearing on, any individual results that may be attained by the trading system in the future.

This trading system, like any other, may involve an inappropriate level of risk for prospective investors. THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CAN BE SUBSTANTIAL AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prior to purchasing or leasing a trading system from this or any other system vendor or investing in a trading system with a registered commodity trading representative, investors need to carefully consider whether such trading is suitable for them in light of their own specific financial condition.

In some cases, futures accounts are subject to substantial charges for commission, management, incentive or advisory fees.

It may be necessary for accounts subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. In addition, one should carefully study the accompanying prospectus, account forms, disclosure documents and/or risk disclosure statements required by the CFTC or NFA, which are provided directly by the system vendor and/or CTA’s.

The information contained in this report is provided with the objective of “standardizing” trading systems measurements, and it is intended for educational /informational purposes only. All information is offered with the understanding that an investor considering purchasing or leasing a system must carry out his/her own research and due diligence in deciding whether to purchase or lease any trading system noted within or without this report.

This report does not constitute a solicitation to purchase or invest in any trading system which may be mentioned herein. CANNON TRADING COMPANY AND STRIKER SECURITES, INC. MAKES NO ENDORSEMENT OF THIS OR ANY OTHER TRADING SYSTEM NOR WARRANTS ITS PERFORMANCE. THIS IS NOT A SOLICITATION TO PURCHASE OR SUBSCRIBE TO ANY TRADING SYSTEM.

Futures Trading Disclaimer:

Transactions in securities futures, commodity and index futures and options on futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, meaning that transactions are heavily “leveraged”. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you.

You may sustain a total loss of initial margin funds and any additional funds deposited with the clearing firm to maintain your position.

If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

Would you like to get weekly updates on real-time, results of systems mentioned above?

Daily Levels for Jan. 26th, 2026

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Would you like to receive daily support & resistance levels?

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

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Find us on Trustpilot

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

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Precious Metals Continue Roaring!!!!! PLUS: Cannon Edge, Bloomberg Commodity Index, Levels, Reports; Your 5 Important Can’t-Miss Need-To-Knows for Trading Futures on January 15th, 2026

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Metals!

By Mark O’Brien, Senior Broker

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Feb(#GC)

4571.07 4604.03 4627.27 4660.23 4683.47

Silver (SI)

— Mar. (#SI)

84.36 88.78 91.17 95.59 97.98

Crude Oil (CL)

— Feb (#CL)

57.29 58.62 60.41 61.74 63.53

 Mar. Bonds (ZB)

— Mar (#ZB)

115 7/32 115 24/32 116 3/32 116 20/32 116 31/32

Precious Metals Continue to Roar!

metal

Metals:

Heads up precious metals futures traders. Did you know CME Group offers a 1-oz. gold futures contract? That’s right: a gold futures contract that’s one hundredth the size of the main 100-contract. This is a cash-settled contract. You can’t take physical delivery of the one ounce of gold from which the contract is derived, but it offers a lower-margin product to trade gold.

Each $1 move in the contract is equal to a $1 move. It moves in $0.25 increments.

CME Group’s full contract specifications

The current initial margin requirement is $253.

Contact your Cannon Trading Co. broker for FCM availability and platform symbol.

More metals:

Keep an eye out for the introduction of a new 100-ounce silver futures contract being released in February.  The 100-Ounce Silver futures contract will offer a lower-margin product to trade a silver position. At 100 ounces, the contract is 1/50 the size of the main 5,000-oz. silver fututres contract, meaning each 1-cent move in the contract will be equal to $1.

More Metals:

To recap, the CME Group raised margins on a number of precious metals futures contracts. Below are the new margins for the main precious metals  futures contracts.

Day trading margins vary among clearing firms / FCM’s.

If needed, contact your Cannon Trading Co. broker for specifics.

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Introducing Cannon Edge — Your Daily Futures Snapshot

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

  • Current price and daily % change
  • 30‑day and 52‑week highs/lows
  • PROPRIETARY Short‑term and long‑term trend signals
  • Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQQ.

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Bloomberg Commodity Index

 

The Bloomberg Commodity Index is a weighted index of commodities from the grains, meats, energy, metals, and soft sectors. The weekly chart broke out of its extended range this fall and now it is gapping away from the first PriceCount objective. If the chart can sustain further strength, we could be headed for a challenge of the second count.

FREE TRIAL AVAILABLE

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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

Daily Levels for January 15th, 2026

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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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Find us on Trustpilot

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

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Precious Metals Continue to ROAR!!!! Crude Oil Numbers, Levels, Reports; Your 4 Important Can’t-Miss Need-To-Knows for Trading Futures on January 14th, 2026

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PPI, Business Inventories, Fed Speakers,

Crude Oil Numbers

& more

Look for a volatile trading day tomorrow!

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Feb(#GC)

4537.77 4566.13 4605.07 4633.43 4672.37

Silver (SI)

— Mar. (#SI)

80.59 83.68 86.45 89.54 92.31

Crude Oil (CL)

— Feb (#CL)

58.65 59.85 60.68 61.88 62.71

 Mar. Bonds (ZB)

— Mar (#ZB)

115 2/32 115 13/32 115 22/32 116 1/32 116 10/32

 Precious Metals Continue to Roar!

metal

The precious metals move to the upside has continued today with the sharp move higher for Silver which traded up over 7% on the day today, reaching a new all-time high price of $86.34 today and closing slightly below that level. Gold and Copper also traded higher with gold trading up over 2% and Copper trading higher by around 1.6%, and the momentum is still strong across the asset class.

There has been a lot of headlines and global uncertainty that could be playing a role in the dramatic moves to the upside, but any selling that has been seen over the last year has been met with buying on weakness helping drive the prices higher.

The equities also saw a positive day today with the S&P, Nasdaq and Russell all trading marginally higher led by the Russell. This has been a common theme over the past few months where the Russell either leads equities higher or leads the prices to the downside, and that trend continued today.

There is a lot of economic data being released this week, starting tomorrow looking at CPI, which can have a strong impact on the equities, precious metals, treasuries and the crypto futures that traders will be watching throughout the week.

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Coinbase Products available for trading on the StoneX (CannonX) Futures Platform! See details below:

Name Exchange Class Exchange Symbol CQG Symbol Size
nano XRP Coinbase Crypto XRP XRP 500 XRP
XRP Coinbase Crypto XRL XRL 10,000 XRPXRP
nano XRP Perp-Style Coinbase Crypto XPP XPP 500 XRP
nano Solana Coinbase Crypto SOL SOL 5 Solana
nano Solana Perp-Style Coinbase Crypto SLP SLP 5 Solana
Solana Coinbase Crypto SLC SLC 100 Solana
nano Ether Perp-Style Coinbase Crypto ETP ETP 0.1 Ethereum
Ether Coinbase Crypto ETI ETI 10 Ethereum
nano Ether Coinbase Crypto ET NET 0.1 Ethereum
nano Bitcoin Coinbase Crypto BIT BIT 0.01 Bitcoin
nano Bitcoin Perp-Style Coinbase Crypto BIP BIP 0.01 Bitcoin

February Crude Oil

February crude oil stabilized its slide last month and now has activated upside PriceCounts on the correction higher. The first count projects a run to the 61.75 area.

FREE TRIAL AVAILABLE

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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

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Daily Levels for January 14th, 2026

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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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Find us on Trustpilot

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

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Here’s to a Happy 2026! Precious Metals – Silver Gold Palladium, Trading Hours for the rest of the Week, Levels, Reports; Your 5 Important Can’t-Miss Need-To-Knows for Trading Futures on January 2nd, 2025

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The First Trading Day of 2026!

At-a-Glance Levels

Instrument S2 S1 Pivot R1 R2

Gold (GC)

— Feb(#GC)

4231.37 4279.03 4331.97 4379.63 4432.57

Silver (SI)

— Mar. (#SI)

64.96 67.68 71.98 74.70 79.00

Crude Oil (CL)

— Jan (#CL)

56.38 56.92 57.73 58.27 59.08

 Mar. Bonds (ZB)

— Mar (#ZB)

114 13/32 114 25/32 115 17/32 115 29/32 116 21/32

We at Cannon Trading Co., wish you all a healthy, safe and prosperous new year.

metal

Wishing you clear trends, tight spreads, and the kind of volatility that works for you in 2026. May your stops be respected, your fills be friendly, and your P&L lean in the right direction all year long.

Precious Metals Margin Update:

The exchange has increased overnight margins for all precious metals.

5k OZ Silver (SI) increased from 27,500 to 35,750 per contract, mini is x.50 of full, Micro is x.50 of full (mini and micro are the same)

100 OZ Gold (GC) from 24,200 to 26,400 per contract, Mini is x.50 of full; Micro is x.10 of full

Palladium from 19,800 to 24,200

Platinum from 8,800 to 11,000

This is the second increase since last Friday, Dec. 26.

Modified Trading Hours for New Years below.

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Daily Levels for January 2nd, 2026

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Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day! 

Click here for quick and easy instructions.

Economic Reports

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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Find us on Trustpilot

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Join our Private Facebook group

Subscribe to our YouTube Channel

Listen to our podcast: Subscribe on AppleSpotify, Amazon

or wherever you listen to podcasts!

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Trading Gold Futures: Strategies, Exchanges, and Techniques

Read more about trading gold futures with Cannon Trading Company here.

Trading gold futures offers traders the opportunity to capitalize on the price movements of one of the world’s most cherished and sought-after precious metals. In this comprehensive guide, we will delve into the intricacies of trading gold futures, exploring the prominent gold futures exchanges in the US and globally, discussing day trading techniques specific to gold futures, examining gold futures options, and highlighting Cannon Trading Company’s renowned customer service and impressive TrustPilot rating.

Understanding Gold Futures Trading

Gold, often referred to as a “safe-haven” asset, has historically been valued for its ability to retain its worth during economic uncertainties. Gold futures contracts allow traders to speculate on the future price of gold, whether they anticipate the price to rise or fall. These contracts offer a standardized way to buy or sell a specific quantity of gold at a predetermined price on a future date.

Exchanges for Gold Futures

Gold futures are actively traded on several exchanges around the world, providing liquidity and price discovery for traders. Notable exchanges for trading gold futures include:

  1. Commodity Exchange (COMEX): Operated by the Chicago Mercantile Exchange (CME) Group, COMEX offers gold futures contracts that are among the most widely recognized and traded in the world. The contracts are denominated in troy ounces.
  2. Multi Commodity Exchange (MCX): Based in India, MCX offers gold futures contracts that cater to the Indian market’s demand for gold trading. These contracts are popular among both retail and institutional traders.
  3. Tokyo Commodity Exchange (TOCOM): TOCOM provides gold futures contracts to traders in Asia, particularly Japan. These contracts are traded in yen per gram.
  4. Shanghai Gold Exchange (SGE): The SGE is one of the world’s largest physical gold exchanges and offers gold futures contracts denominated in grams. It primarily serves the Chinese market.

Day Trading Techniques for Gold Futures

Day trading gold futures involves taking advantage of short-term price movements within the trading session. Successful day traders employ various strategies and techniques tailored to the unique characteristics of gold futures.

  1. Technical Analysis: Utilizing technical indicators, chart patterns, and candlestick analysis can help traders identify potential entry and exit points. Moving averages, relative strength index (RSI), and Fibonacci retracement levels are commonly used tools.
  1. Volatility Analysis: Gold can exhibit significant price volatility, influenced by economic data, geopolitical events, and market sentiment. Traders can use volatility indicators like the Average True Range (ATR) to gauge potential price swings.
  1. News and Economic Data: Day traders should stay informed about economic releases, central bank decisions, and geopolitical developments that can impact gold prices. Unexpected news events can lead to rapid price changes.
  1. Range Trading: Range-bound markets can provide day trading opportunities. Traders can look for support and resistance levels and trade within the range, aiming to profit from price fluctuations between these levels.
  1. Scalping and Breakout Strategies: Scalping involves making quick trades to capture small price movements, while breakout strategies focus on entering trades when prices break out of established levels. Both approaches require rapid decision-making.

Trading Gold Futures Options and Options on Futures

Gold futures options provide traders with the flexibility to speculate on gold price movements while managing risk. Options on gold futures allow traders to establish positions that benefit from price increases (call options) or price decreases (put options) without the obligation to buy or sell the underlying futures contract.

  1. Speculation: Traders can use gold futures options to speculate on the future price direction of gold. Buying call options can provide exposure to potential price increases, while buying put options can provide exposure to potential price declines.
  2. Risk Management: Gold futures options can be employed as a form of risk management. Gold producers, for example, can use put options to hedge against potential price declines that could impact their profitability.
  3. Spread Strategies: Options spread strategies involve trading multiple options contracts simultaneously to capitalize on price differentials. Vertical spreads and calendar spreads are commonly used strategies to manage risk and profit from price movements.

Cannon Trading Company: Customer Service and TrustPilot Rating

Cannon Trading Company is a reputable brokerage firm known for its services in facilitating various types of trading, including gold futures and options on futures. The company is recognized for its dedication to delivering top-notch customer service and support to traders of all experience levels.

Customer Service Excellence: Cannon Trading Company’s experienced brokers provide personalized assistance, market insights, and trading strategies to clients. Their commitment to customer service ensures that traders have the resources they need to make informed decisions.

TrustPilot Rating: The company boasts an impressive TrustPilot rating of 4.9 out of 5 stars, reflecting the high level of customer satisfaction it consistently achieves. This rating is indicative of positive customer experiences and the value that Cannon Trading Company provides to its clients.

Trading gold futures offers traders the opportunity to engage with a precious metal that holds both historical significance and contemporary economic relevance. Understanding the intricacies of gold futures trading, employing effective day trading techniques, and considering options on gold futures can enhance a trader’s ability to navigate this dynamic market. Choosing a reputable brokerage partner like Cannon Trading Company, known for its exceptional customer service and TrustPilot rating, can provide traders with the support and resources needed to succeed in trading gold futures and related derivatives.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

DisclaimerTrading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Gold Futures: A Comprehensive Analysis

Find out more about trading gold futures with Cannon Trading Company here.

Gold futures represent an essential segment of the global financial landscape, attracting investors, traders, and central banks seeking to manage risk and speculate on the precious metal’s price. This comprehensive analysis delves into the world’s top producers of gold, central banks holding gold reserves, exchanges where gold is traded globally, and the historical evolution of gold futures. Additionally, we explore gold’s unique status as a safe-haven asset and compare it to other precious metals, particularly platinum.

Top Producers of Gold in the World

  1. China: China consistently ranked as the largest producer of gold, with significant mining operations throughout the country.
  2. Russia: Russia stood as the second-largest producer, with vast gold reserves and mining activities in Siberia and the Far East.
  3. Australia: Australia was a major player in the gold mining industry, with substantial deposits in Western Australia.
  4. United States: The US boasted significant gold reserves, with mining operations in states like Nevada, Alaska, and South Dakota.
  5. Canada: Canada held substantial gold reserves, with mining activities in provinces like Ontario and Quebec.
  6. Peru: Peru was a prominent gold producer, with mining operations in the Andes region.
  7. South Africa: South Africa, historically a major gold producer, faced challenges due to declining production and increased depth of mining operations.
  8. Ghana: Ghana was a leading gold producer in Africa, with rich deposits and well-established mining operations.

Central Banks Holding Gold Bullion in Reserves

Central banks have historically viewed gold as a reliable store of value and a means to diversify their reserve assets. As of September 2021, some of the largest holders of gold bullion in their reserves included:

  1. United States: The United States held the largest gold reserves among central banks, primarily stored at the Fort Knox Bullion Depository and other secure locations.
  2. Germany: Germany was the second-largest holder of gold reserves, with significant portions stored domestically and abroad.
  3. Italy: Italy ranked among the top holders of gold bullion in its central bank reserves.
  4. France: France also held considerable gold reserves, stored in various locations.
  5. China: China had been steadily increasing its gold reserves in recent years, aiming to diversify its foreign exchange holdings.
  6. Russia: Russia significantly increased its gold reserves, strategically diversifying away from traditional reserve currencies.

Exchanges Where Gold is Traded Around the World

Gold is actively traded on various exchanges worldwide, providing a liquid and accessible market for participants. Some of the prominent exchanges for gold trading include:

  1. COMEX (Commodity Exchange, Inc.): Located in the United States and part of the CME Group, COMEX is one of the largest and most influential exchanges for gold futures trading.
  2. London Bullion Market Association (LBMA): The LBMA is an over-the-counter market based in London, where gold is traded through a network of dealers.
  3. Shanghai Gold Exchange (SGE): The SGE, based in China, has gained significance as a major exchange for physical gold trading.
  4. Tokyo Commodity Exchange (TOCOM): TOCOM facilitates gold futures trading in Japan.
  5. Dubai Gold & Commodities Exchange (DGCX): DGCX serves as a significant platform for gold futures trading in the Middle East.

History of Gold Futures

The concept of gold futures traces back to ancient civilizations, where contracts for future delivery of gold were used to facilitate trade and secure prices. However, the modern history of gold futures can be traced back to the 1970s when the US officially ended the convertibility of the US dollar into gold (the gold standard).

This pivotal moment marked the beginning of a new era for gold futures, as the precious metal shifted from being the basis of currency to a financial instrument for investment and hedging. In 1974, the first-ever gold futures contract was launched on the COMEX exchange, revolutionizing the way gold was traded and priced.

Since then, gold futures have evolved to become a cornerstone of global financial markets. Investors and traders use gold futures to speculate on price movements, hedge against inflation and currency risk, and diversify their portfolios. Gold futures remain popular due to their high liquidity, ease of trading, and their status as a safe-haven asset in times of economic uncertainty.

Gold as a Safe Haven

One of the most enduring attributes of gold is its role as a safe-haven asset. In times of economic and geopolitical uncertainty, investors often flock to gold as a store of value and a hedge against market volatility. The precious metal has a historical track record of preserving purchasing power during periods of inflation and financial crises.

During the 2008 global financial crisis, for example, gold prices surged as investors sought refuge from the turmoil in traditional financial markets. Similarly, during the COVID-19 pandemic in 2020, gold experienced a significant rally as central banks implemented stimulus measures and investors sought safety amid economic uncertainty.

Gold vs. Platinum

Gold and platinum are two of the most valuable and sought-after precious metals globally. While they share certain characteristics, they also exhibit key differences.

  1. Supply and Demand: Gold has a long history as a store of value and is highly liquid due to its wide acceptance as a monetary asset and jewelry component. Platinum, on the other hand, has a more limited history as a precious metal and is primarily used in industrial applications, particularly in catalytic converters for vehicles.
  2. Price and Market Dynamics: Gold generally commands a higher price per ounce than platinum. The gold market is more extensive and active, with higher trading volumes and more significant price fluctuations.
  3. Safe Haven Status: Both gold and platinum can act as safe-haven assets, but gold’s status is more established and widely recognized.
  4. Industrial Demand: Platinum’s primary industrial applications give it some exposure to economic cycles and industrial demand, which can impact its price.
  5. Jewelry and Investment Demand: Gold has a stronger association with jewelry and investment demand, making it more appealing to a broader range of investors and consumers.

Gold futures have a rich historical legacy that stretches back centuries, from facilitating trade to becoming a financial instrument for hedging and speculation. As one of the top producers of gold, the United States plays a significant role in the global gold market. Central banks across the world hold substantial gold reserves, recognizing the precious metal’s enduring value. Gold’s status as a safe-haven asset cements its place in investors’ portfolios during times of economic uncertainty. While platinum shares some attributes with gold, it remains primarily associated with industrial applications. As global financial markets evolve, gold futures will continue to be a critical component, offering participants an avenue for risk management and investment diversification.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey at Cannon Trading Company today.

DisclaimerTrading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.