Gold Bulls Need To Gold $1,340.50
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Yesterday’s close: Settled at 1350.7, up 2.8
Fundamentals: The Dollar is attempting to resume is downtrend but the worst German Sentiment data since 2012 is buoying it this morning. Still, given such, the Dollar is only up a minor amount. Gold clawed back losses early in the session after an unenthusiastic read on Retail Sales, a miss on NY State Empire Manufacturing and a tweet from President Trump that pointed to China and Russia devaluing their currencies. China data last night that included GDP, Industrial Production and Fixed Asset Investment missed and this has held back Asian equity benchmarks and likely keeping a bid under Gold. There is a lineup of Fed speakers; Williams at 8:15 am CT, Quarles at 9:00 am, Harker at 10:00 am, Evans at 12:10 pm and Bostic at 4:40 pm CT. Watch Bill Baruch’s interview with Daniela Cambone of Kitco.
Technicals: While Gold did settle above first key resistance, it has retreated into this morning. In order for the metal to remain extremely constructive in the near term, we must see it hold 1340.5-1342.8. A move below here will open the door to profit taking and waves of selling.
Resistance: 1348.8**, 1356.7-1358.4**, 1367.8-1370***, 1375.5**, 1392.6**, 1427.2***
Support: 1340.5-1342.8**, 1331.8-1333.7**, 1322.4-1325.4**, 1312.4-1316.6***, 1304.6***