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Gold Prices Pressured By Rising US Dollar

Commentaries & Views

Last week’s close: Settled at 1356.2

Fundamentals: The Dollar is up more than 0.5% to start the week and this has put direct pressure on Gold. First, Gold lost significant ground in the latter half of Friday’s session and finished the electronic close $6 off its settlement. Very strong reads on U.S housing and Michigan Consumer data got the ball rolling on Friday. However, as we discussed on Friday’s Morning Express, a major driver in Dollar weakness and Gold strength has been the Yen. We noted explicitly that the Yen hit our rare major four-star resistance overnight into Friday and weakness here will correlate into Gold. There is no domestic data to start the week, but we look to FOMC Minutes tomorrow to be a driving force for the metal.

Technicals: Price action ran head on into major three-star resistance on Friday. We noted that we began Neutralizing our Bullish Bias on Friday morning. A move below first key support has put further selling pressure on Gold as long liquidate. This is healthy consolidation after a strong run last week. Still, we must see support at 1336.7 hold and ideally a close back above 1343.2 for the bulls to maintain an immediate-term upper hand. Traders must also watch the Dollar Index this week bouncing from a double bottom low. We discussed positioning in the longer-term in Silver on Sunday’s Tradable Events this Week.

Bias: Neutral/Bullish

Resistance: 1351.3**, 1367.8-1370***, 1377.8**, 1392.6***, 1432.9**

Pivot: 1343.2

Support: 1336.7**, 1330.2-1330.4**, 1319-1322.1**, 1302.3-1309****

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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