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Gold Bulls, Continue Watching The U.S. Dollar

Commentaries & Views

Last week’s close: Settled at 1257.5 down .4%

Fundamentals: Gold is capitalizing off a weaker Dollar this morning and the bottoming continues. Media outlets this morning credit the weaker Dollar to doubts on both tax-reform getting pushed through before the end of the week and the potential pro-growth lift. Equity markets would disagree, but ultimately when it comes to the Dollar, this is exactly what we have expected and exactly why we like buying Gold ahead of January. We believe tax-reform will get passed this week and that is why we have advised against chasing Gold at resistance and instead waiting for a slight bump up in the Dollar and consolidation lower in Gold upon the passing as an entry point if you already missed the boat. There is no data today, but we await housing reads through midweek and final Q3 GDP Thursday. Friday will be the big day with PCE, Durable Goods, Personal Spending and Income and Michigan Consumer Sentiment.

Technicals: Resistance is squarely at 1262.8-1263.2, a close above here will push the tape to the 200-day moving average. We are eyeing support at 1247-1250 as a very attractive buy with strong seasonal implications.

Bias: Bullish/Neutral

Resistance – 1262.8-1263.2**, 1273.9-1276.7***, 1289**, 1303.4-1304.7****

Support – 1247-1250**, 1237-1241.7**, 1214.5-1225***

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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