Gold Traders Need To Keep An Eye On The US Dollar
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1337.3, down 9.6
Fundamentals: Gold is up about 1% this morning with U.S and China trade war fears being the key catalyst. This has just been one of the many reasons why we are bullish Gold. While we see this exacerbating moves in the likes of equities and other markets, we see it continuing to support Gold. Additionally, we believe the Dollar has not taken the toll it will because of such. Yes, if the equity market recovers today some of these gains in Gold could get pared but we see it continuing to make a constructive move to the highest level in five years as all of this unfolds in the coming weeks. U.S data will quickly come into the picture this morning with. St. Louis Fed President Bullard who has a history of giving the market dovish comments when needed most, speaks at 8:45 am CT. Markit Composite and Services PMIs are also due at 8:45 am CT. The most closely watched read today will be ISM Non-Manufacturing at 9:00 am CT. Durable Goods and Factory Orders are also due at 9:00 am CT. Cleveland Fed President Mester speaks at 10:00 am CT. Traders must keep a close eye on the U.S Dollar today.
Technicals: We are Bullish Gold and have been. Fundamentals are lifting the metal today and this will continue to be a pivotal week from that perspective. Still, the technicals are inarguably constructive and after a gain like this overnight, the path is paved for a sharp move higher if the data can agree. First resistance comes in at 1353.8 and a close above here at minimum will continue to build this path.
Resistance: 1353.8**, 1360**, 1367.8-1370***, 1375.5**, 1392.6**, 1427.2***
Support: 1337.3-1339.6**, 1327.3-1331.8**, 1312.4-1316.6***, 1304.6***