Gold Facing Tremendous Resistance
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Gold pulled back to a low of 1283.1 at the end of yesterday's session and posted a low of 1283.2 early in today's. Equity markets, the Dollar and Treasury yields all grinded higher through yesterday's session and encouraged a short term fail in Gold just shy of the 1300 level. As we discussed yesterday Gold has tremendous long term resistance overhead from a trend line dating back to its all-time high in 2011 and this first test was unable to punch through, partly because Goldâ€™s recent push became too relevant. We also have the 50 day moving average coming in at 1244.5 and trailing the 200 dma at 1267.7; we believe this is building for the Golden Cross. Housing data was mixed this morning.
Resistance â€“ 1300-1302.1**, 1309.3**, 1317.7**
Pivot - 1290.7
Support â€“ 1280.8**, 1267.7-1273.3****, 1253.9-1254.7*, 1248.2**, 1241.5-1244.5***