Gold Seeing A Healthy Pullback
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Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled yesterday at 1318.5
Fundamentals: Gold began to see some of that profit taking we were talking about yesterday and traded to an early session low last night of 1307.1. The metal is holding extremely well as Manufacturing and Services data around the globe this week came in much better than expected. The FOMC Minutes brought no surprises and though it didn’t come off more dovish than anticipated, it was the statement in mid-December, just as we expected that has been a key catalyst in this move in Gold. We got much of the same as members becoming increasingly hesitant to raise rates with inflation below their target. Our major thesis behind buying Gold in December is because w3 believe that will either not hike three times in 2018 or each of the three hikes will be bubble wrapped with a dovish rhetoric. Markit Composite and Services PMI data is due at 8:45 am CT. Of course, tomorrow’s Nonfarm Payroll report is key, and traders should continue to manage their risk.
Technicals: Gold had a healthy pullback of $15 but did not quite get to where we like buying at 1302-1303.4. Remember, we have never wavered from our Bullish Bias, just have simply said there are ways to manage risk without getting out of long positions and we are happy to discuss at our trade desk, 312-278-0500. A continued close above 1317 will keep the bulls with a clean upper hand.
Resistance – 1317-1318.5**, 1323*, 1335.8**
Support – 1307.1-1309.8*, 1302-1303.4***, 1292.9**, 1279.5***