Look For Healthy Pullback In Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1337.1
Fundamentals: The Dollar continues to find some footing at the key 90 level in the Dollar Index and this will be critical for the Gold trade in the near-term. The metal retreated about 1% from its Sunday night high and now is seemingly awaiting more information. Equity markets saw short-lived pressure in the second half of yesterday which helped Gold retest its swing high. However, as stopgap budget deal could be voted on tomorrow the equity market has recovered along with the Dollar and treasuries are seeing pressure; not a great combination for Gold in the very near term. Industrial Production data is due at 8:15 am CT and Fed Presidents Evans, Kaplan and Mester speak at 2:00 pm CT, 2:15 and 3:30.
Technicals: We remain unequivocally bullish Gold in the long-term. In the near term, first support at the 1327.3-1330.5 is very important and a close below here will signal a healthy pull back. We continue to watch the 1335.8 mark and want to see a continued close above there in order to leave the bulls with the near-term edge. There is only a marginal difference between R1 and S1 but after such a strong (and awesome!) rally, the net-long position and the RSI are both overdone and it becomes ever important where the metal closes in order to hold or begin to relieve strong momentum.
Resistance – 1335.8**, 1358-1365***
Support – 1327.3-1330.5**, 1321.6**, 1307.1-1308.9**, 1302-1303.4***