Gold Needs To Hold Support At $1,296
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Yesterday’s close: Settled at 1304.4, up 14.8
Fundamentals: Yesterday was Gold’s highest settlement since May 14th. We have been outright Bullish in Bias the metal all week and it finally has begun to pay off. The metal should sustain a bid considering the geopolitical environment ahead of the long weekend; North Korea, China, Italy, Turkey, Spain and more. Today’s economic calendar will be crucial though with Fed Chair Powell speaking at 8:20 am CT. His comments come on the heels of Wednesday’s dovish FOMC Minutes where they are willing to let inflation run past their 2% target without forcing their hand in speeding up hikes; we have been talking about this all month though. Fed Presidents Evans, Bostic and Kaplan all take the stage at 10:45 am CT. Yesterday, Bostic pointed to the Fed allowing finishing their hiking cycle next year. Furthermore, he said that inflation above 2% is not bad as long as it is a slow grind higher, spikes in inflation would be worrisome.
Technicals: We remain Bullish in Gold but have Neutralized our Bias a bit in order to exude that one must trade this market and should be capitalizing on long positions from the mind 1280’s. Resistance does come in at 1308.4-1309 and this is holding price action back. We have two waves of major three-star resistance above here and the market itself will not turn immediate-term bullish until it closes out above there. It will be key for pullbacks to hold previous resistance and now support at 1296.2-1298.4.
Resistance: 1308.4-1309**, 1314.9-1316***, 1326.3-1328***
Support: 1296.2-1298.4**, 1289.4**, 1277.5-1278.3***, 1247.2-1250****