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Gold Bulls Got Exactly What They Wanted Wednesday

Commentaries & Views

Yesterday’s close: Settled at 1321.5 but extended gains in electronic session.

Fundamentals: Gold bulls got all they needed from the Federal Reserve yesterday; for them to keep the path of rate hikes this year projected at three. Traders and analysts had begun to project four hikes this year after new Fed Chair Jerome Powell’s congressional testimony at the end of February. However, these expectations only inflated hopes in the Dollar, those of which were crushed yesterday. We discussed this perception in more detail in our FX Rundown last night. Poor data out of Europe early this morning has helped stabilize the Dollar trade slightly.

Technicals: Gold built a base at major three-star support at 1303.6-1308 leading up to the Fed meeting and played off this level extremely well early in yesterday’s session. The constructive manner of this chart sets the metal up for further gains. Price action has peeled back slightly, and we want to see a continued close out above 1329.8-1330.5 in order for this immediate-term momentum to remain unquestionably intact. Resistance does come in at 1341.2-1342.9 and a move out above here should encourage a path of least resistance to a trend line that comes in at 1353 today.

Bias: Bullish/Neutral

Resistance: 1341.2-1342.9**, 1351.3-1353**, 1367.8-1370***

Pivot: 1329.8-1330.5

Support: 1318.3-1321.8**, 1303.6-1308***, 1298.7****, 1291.5**

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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