Gold Investors Must Manage Risks Ahead Of FOMC Meeting
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Yesterday’s close: Settled at 1317.8, down 7.8
Fundamentals: Driving Gold yesterday was a combination of technicals and fundamentals. After difficulty in getting out above resistance at 1327.3-1329.8, the Euro was jawboned lower. Better than expected data yesterday morning helped encourage a path of least resistance higher in the Dollar and this led to waves of selling below the 1318.3-1322.8 pivot level to an overnight low of 1313.5. Still, Gold has battled back once again into this morning, regaining 1320. Drama in Washington regarding H.R. McMaster rumors and word that Mueller subpoenaed the Trump Organization did not put pressure on the Dollar immediately yesterday and this was concerning for Gold, however, it has begun to show this morning.
Technicals: We remain Bullish with a splash of Neutral as we are displaying that risk must be managed while next week’s Fed meeting comes into focus and the strongest support levels have yet to be tested on this wave. Still, first key support at 1312-1313.2 is not to be underestimated as the overnight price action built a rare triple bottom. Price action has reversed higher from here and regaining the near-term neutral pivot at 1318.3-1322.8; a close above here will help the bulls regain an edge. Still, only a close out above first key resistance will encourage fresh buying.
Resistance: 1327.3-1329.8**, 1341.2-1342.9**, 1350.2-1351.3**, 1367.8-1370***
Support: 1312-1313.2**, 1305.5-1308***, 1291.5-1298.3****