Now Is Not The Time To Chase Gold Prices
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1335.2
Fundamentals: Yesterday’s surge in Gold was met with strong selling against our key resistance level. While the fundamental back-drop continues to support a bullish environment for Gold, our technical levels remain extremely key to the trade. Gary Cohn’s resignation late yesterday took the front seat from the comments of Fed Governor Brainard and Dallas Fed President Kaplan. Shortly after Cohn’s resignation was announced, Brainard said that economic “headwinds are shifting to tailwinds” and this could speed up the path of rate hikes. Dallas Fed President Kaplan is in the camp that they must hike now, and it is too early worry about an impact from tariffs. This stopped Gold in its tracks last night as we said above, right in front of a key resistance level.
Technicals: Gold spiked to a session high of 1342 on the Cohn news but the exuberance has dissipated since. This is our key resistance level that aligns multiple technical points along with last Monday’s swing high. We remain unequivocally long-term bullish Gold, but traders need to take advantage of sharp moves higher while not chasing such. We have expressed that outside of a fundamental outlier in data, that Gold is likely to stay contained through the end of March and the expiration of the April contract. First key support now comes in at 1327.3 and it must hold this level to remain in its most recent immediate-term uptrend.
Resistance: 1341.2-1342.9**, 1350.2-1351.3**, 1367.8-1370***
Support: 1327.3**, 1318.3-1322.8**, 1305.5-1306.6***, 1291.5-1295.7****