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Gold Is Unimpressed With U.S. Dollar Strength

Commentaries & Views

Yesterday’s close: Gold recovered well off its low of 1273.6 to settle back into support at 1277.9-1281.3 at 1280.9.

Fundamentals: Gold prices were dwindling lower yesterday but some news across the wire though again denied referenced the U.S Airforce preparing B-52 Nuclear Bombers to potentially be on 24-hour alert reinvigorated buying. We believe price also played a role in the knee-jerk higher as Gold was nearing a critical support level. Equity markets also came under pressure throughout the session and this attracted buyers. We continue to watch the Dollar Index very closely as it has had a very unimpressive rally and is flirting with the 100-day moving average but unable to maintain price action above it; ultimately, we expect the Dollar to head lower for longer. Manufacturing data is due at 8:45 am CT, Durable Goods is due tomorrow, ECB Meeting Thursday and the first look at Q3 GDP on Friday.

Technicals: Price action closed in on major four-star support at 1262.8-1269 before ripping higher. Settling back into 1277.6-1281.8 was a small win for the bull camp. There is no imminent buy signal and the tape is trying to edge lower this morning but Gold is consolidating $80 from its high of the year and strong selling pressure seems to have abated. If you are long term bullish Gold and do not have exposure, you need to ask yourself why? We are here to help discuss the risk/reward factors and ways to play it. Call our trade desk at 312-278-0500.
Bias: Bullish/Neutral

Resistance – 1286.9*, 1291-1292.9**, 1298.4-1302.2**, 1308.4-1312.6**

Pivot - 1277.6-1281.8

Support –1262.8-1269***, 1243.6**

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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