Gold Investors: Protect Your Investment Gains
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1356.3
Fundamentals: The Dollar lost about 1% yesterday and Gold extended gains overnight to the highest front month high since August 2016. The ECB left policy unchanged this morning, but we await the more volatile event; Mario Draghi’s press conference at 7:30 am CT. Also at that time we have weekly Jobless Claims, Wholesale Inventories and Goods Trade Balance. At 9:00 am CT is New Home Sales. Tomorrow brings the heat with the first look at Q4 GDO and Durable Goods. President Trump is also scheduled to speak in Davos tomorrow. With Treasury Secretary Mnuchin being one of two catalysts for the Dollar selloff yesterday, the other being a bearish technical close Tuesday, traders must watch the currencies and Gold with Davos conferences in mind. Treasury prices are trying to work themselves off the lows while the Yen extended gains overnight, all helpful for strong Gold.
Technicals: We remain unequivocally Bullish in our Bias, though we have exuded caution due to the level in which Gold has reached. There are ways to protect profitable long positions and if you have been following our bullish rhetoric since mid-December then you should think about doing so. Please contact our trade desk at 312-278-0500 to discuss. The overnight high of 1364.5 is the highest front month high since August 2016 but this February contract did trade 1365.8 back in September 2017. Each of the last three times, price action has failed to regain $1400. Today is option expiration for the February contract and this could work to keep the tape in check and even encourage some selling. First key support comes in at 1349.7 while previous highs at 1345 bring a key level in which we do not want to see a close below; tests into here should present a buy opportunity.
Resistance – 1362.4-1365.8***, 1377.8**, 1392.6***, 1432.9**
Support – 1349.7**, 1344.8-1345**, 1334.9-1335.8**, 1324.3**