Gold Is Building A Beautiful Floor
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1327.1, up 6.3
Fundamentals: Despite a quick stop-run, Gold liked the in-line CPI read yesterday. Ultimately, this pins much more of an emphasis on the non-existent wage growth as we head into next week’s Fed hike meeting. However, Gold also enjoyed a safe-haven bid on the news that Secretary of State Rex Tillerson was dismissed by the White House. Equity market came under pressure on this news as well as tariff fears; President Trump is looking to impose $60 billion in tariffs on China with a strong focus on tech and telecommunications. The Dollar did not like this news either and found itself trading lower before ECB President Mario Draghi jawboned the Euro back early this morning.
Technicals: Yesterday’s constructive price action paves the way for a higher tape, but the hurdle remains first key resistance at 1327.3-1329.8. The overnight high was 1330.5 before falling back in the meat of yesterday’s range. Today’s data will be critical, and a close out above first key resistance would signal a move to the 1341.2-1342.9 level if it has not already happened on today’s session. Gold is building a beautiful floor on a longer-term basis and it just needs one small catalyst to make its way to knock on the 1360 door once again, and this time we imagine it will break out above.
Resistance: 1327.3-1329.8**, 1341.2-1342.9**, 1350.2-1351.3**, 1367.8-1370***
Support: 1312-1313.2**, 1305.5-1307.1***, 1291.5-1297.6****