Cautious Outlook For Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold is now through major three star support and as we feared, the metal took a punch to the gut while the Dollar traded steady to higher. A critical second half of the week is getting underway as traders and investors alike await the release of the FOMC Minutes from the June meeting at 1:00 pm CT. The Fed gave a more hawkish tone than what was expected by many at the meeting, today's minutes should be key in understanding the path they want to take going forward. Especially after Janet Yellen spoke from both sides of her mouth last week. ISM Manufacturing data beat on Monday and as we look to ISM Non-Manufacturing tomorrow and Nonfarm Payroll Friday the question everyone will be looking to answer is whether economic data is beginning to turn a corner from a dismal second quarter. If this is the case then Gold should remain under pressure. We still believe the metal complex will have its time to shine, but we remain very cautious right now.
Resistance – 1234-1237.6**, 1244.6**, 1253.2**, 1262.4-1263.6***
Pivot – 1245.9-1246.7
Support – 1214.3-1217.8**, 1197.7-1201***, 1294.5**, 1173-1175**