Gold Bulls Are Holding Their Ground
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1211.5, down 2.9
Fundamentals: The last 48 trading hours have been a heck of a battle for the metal which has ultimately held ground in a very constructive manner. However, Gold will get put to the test at 7:30 am CT when the PCE Index, the Federal Reserve’s preferred inflation indicator, is released. In yesterday’s FX Rundown we discussed the importance of this read on the Dollar. Expectations are for 2.0% for this July read. In June, PCE dipped to 1.9%. Last week, the FOMC Minutes and Fed Chair Powell were major catalysts in Gold’s bounce as their inflation outlook softened. A release of 2.0% or lower will help Gold keep its recent gains.
Technicals: Trend line support for Gold aligns with our 1204 level and this is the line in the sand; a move below here would potentially open the door down to 1187.6-1189.5. However, on the bright side, Gold is building a flag-like bullish pattern and a hold of 1204 today and a green close could set the metal up for the next leg higher and the path to 1250.
Resistance: 1227-1228.5**, 1235.6**, 1244.6-1251.6***
Support: 1204***, 1193.9**, 1187.6-1189.5***, 1178.5-1179.8**, 1167.1***