Gold Has A Solid Technical Set Up
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Yesterday’s close: Settled at 1332.7
Fundamentals: Price action moved up firmly yesterday morning on the heels of dovish comments from St. Louis Fed President Bullard. The tape spiked at 7:30 am CT and the catalyst sure wasn’t Weekly Jobless Claims data at a new 45-year low. The Dollar is trading in a slightly subdued range below major resistance, however, a flat inflation read out of Europe has helped buoy its price action. With no major economic data on the calendar we look to fresh Fed speak to guide the session.. There is no major economic data on the calendar to finish out. We will be eyeing Fed speak; NY Fed President Dudley and Boston Fed President Rosengren are due at 9:15 am CT. Cleveland Fed President Mester who might see her role expanded at the Fed speaks at 12:30 pm CT. San Francisco Fed President Williams is due just ahead of the stock market close at 2:40 pm CT.
Technicals: Price action in the April contract held key support at 1319-1321 throughout the week. This paves the way for a higher low and a solid technical setup off trend line support from the December low. Though price action in the April-only chart nudged the support line, the front-month chart was more concise. The tape is trying to hold back above the 1330.2-1332.1 level and a weekly finish doing so is a win for the bull camp. With the Dollar Index failing against major resistance at the 90 level, we are now upping our Bias to outright Bullish while managing risk to the downside. Feel free to call us to discuss at 312-278-0500.
Resistance: 1330.2-1332.1**, 1343.2-1344.9**, 1350.2-1351.3**, 1367.8-1370***, 1377.8**, 1392.6***, 1432.9**
Pivot - 1325
Support: 1319-1322.1**, 1302.3-1309****, 1293.2***