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Gold Seeing A Healthy Pullback

Commentaries & Views

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.

Bias: Bullish

Resistance – 1317-1318.5**, 1323*, 1335.8**

Support – 1307.1-1309.8*, 1302-1303.4***, 1292.9**, 1279.5***

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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