Get Ready! U.S. Dollar Rally Is Nearly Done
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1319
Fundamentals: Gold has not performed during this stock market volatility. This is because the Dollar has strengthened from oversold conditions. Not to worry though, we believe the Dollar’s bounce is getting close to done. Furthermore, we see the Dollar making a new low in the not too distant future. What does this mean for Gold? There is a key psychological level at $1300, and as long as this area roughly holds, it will set Gold up for a bullish continuation on the year.
Technicals: We are long-term Gold bulls but have also been chart friendly. We Neutralized our Bias below 1280 in November/December to turn Bullish upon the Fed hike. We then Neutralized it again at $1260. We began reintroducing our Bullish Bias yesterday. Is the bottom in on this leg lower, probably not. However, we are looking to major three-star support at 1301.1-1306.6 to be a strong area to position against in the long term. Below there is also strong support and a backstop of sorts at 1290.4-1291.5. Traders should lean on these levels to position long for the next wave higher, one that we believe should take out $1400.
Resistance: 1321.6-1321.7**, 1329.1-1331.9**, 1349.7-1351.4**, 1365-1370***
Support: 1301.1-1306.6***, 1290.4-1291.5***, 1272.9***