Don't Overlook The Data As Geopolitical Risks Rise
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Gold is up more than 1% from yesterday’s settlement and has traded to the highest level in a week on the heels of President Trump’s “fire and fury” comments before the bell yesterday. Price action for the metal dwindled late in the afternoon ahead of the comments. The best read on JOLTs Job Openings ever reversed a strong overnight session that traded to a high of 1271 and sent price action testing below support at the 50 and 100 day moving averages. News midday said that North Korea had nuclear missile capabilities and is now considering a strike on Guam; this buoyed the tape at key support. Price action is running into the next key resistance level at 1283-1284. Nonfarm Productivity and Unit Labor Costs came in a little better as a whole considering the revisions. The geopolitics takes center stage but we must not overlook PPI due tomorrow and CPI due Friday which will both be key for the Gold trade. It is imperative that Gold closes out above the 1270.1-1272.5 level on the week, this level aligns with the trend line from the all-time highs in 2011. However, after this spike the bulls must achieve a close into the 1280.3 recent swing highs and anything less will likely be a disappointment in the near term.
Resistance – 1280.3**, 1283-1284**, 1298.8-1307****
Support – 1270.1-1272.5**, 1259.7-1262.7**, 1253.8**, 1243.7-1245.7***, 1237.5**