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A Defining Moment For Gold And USD

Commentaries & Views

Last week’s close: Settled at 1327.3, down 2.7 on Thursday and down 22.6 on the week

Fundamentals: Gold is off to a strong start this week as trade tensions between the U.S and China come to a forefront. While the White House is set to announce tariffs on Chinese imports focusing on intellectual property of technology this week, in retaliation to the steel and aluminum tariffs, China released a list of 128 U.S items it has begun to tariff. This adds to a jam-packed economic calendar that’s main focus will be Nonfarm Payroll Friday; we discuss this in last night’s Tradable Events this Week. The Dollar is weaker on the trade war discussion but also as it pares gains ahead of this week’s data; we remain long-term bearish the Dollar and this week can be a defining moment in reinvigorating the downtrend. ISM Manufacturing data is due at 9:00 am CT and we look to Minneapolis Fed President Kashkari and know dove to speak at 5:00 pm CT.

Technicals: Gold’s strong start is already facing its first technical hurdle, this is key resistance at 1339.6. A close above here today is crucial as this is needed to break last week’s wave of weakness and help the bulls regain the immediate-term upper hand. To the downside, Gold must hold 1327.3-1331.8 support in order to remain extremely constructive in the intermediate term.

Bias: Bullish/Neutral

Resistance: 1339.6**, 1344-1345**, 1367.8-1370***, 1375.5**, 1392.6**, 1427.2***

Support: 1327.3-1331.8**, 1312.4-1316.6***, 1304.6***

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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