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.
Yesterdayâ€™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 Dollarâ€™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***