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U.S. Dollar Continues To Steal Gold’s Luster

Commentaries & Views

Last week’s close: Settled at 1206.7, up 1.6 on Friday and down 6.6 on the week

Fundamentals: The Dollar is higher this morning as it once again has stolen the safe-haven show. Gold is clearly subdued but battling at the psychological $1200 mark and holding much better than Silver which has shed more than 2%. The Chinese Yuan is only slightly weaker from Friday’s close but has lost ground from where it was over holiday hours. Overall, with a slew of data on the calendar this week, U.S economic data will play a key role in the currency trade and thus the Gold trade. Today we look to Manufacturing PMI at 8:45 am CT, ISM Manufacturing at 9:00 am and Chicago Fed President Evans at 9:30 am.

Technicals: Gold is below major three-star support at 1204 and this places the bears back into the driver’s seat. However, a shallow drop that can hold ground against our next major three-star level at 1187.6-1189.5 could actually prove to be constructive. Today’s close will be pivotal for the technical landscape. With the tape below 1204, we are now forced to begin Neutralizing our immediate-term bias.

Bias: Neutral/Bullish

Resistance: 1210.7*, 1214.9**, 1227-1228.5**, 1235.6**, 1244.6-1251.6***

Pivot: 1204***

Support: 1193.9**, 1187.6-1189.5***, 1178.5-1179.8**, 1167.1***

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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