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Gold Feels The Pain From A Strong USD

Commentaries & Views

Yesterday’s close: Settled at 1333, up 9.0

Fundamentals: The Dollar Index is at the highest level since January 12th and Gold is feeling the pain. The metal is trading $10 from its session high last night and has proved yesterday’s equity market provoked traction was nothing more than a dead cat bounce. Does this deter our long-term expectations for Gold? Not one bit. The metal remains extremely constructive on the year and going back much further. Right now, traders do want to be cautious until there is more near-term certainty, but opportunities could quickly present themselves with the ECB tomorrow morning, and a string of key U.S data reads Thursday and Friday. Today is expiration for both May Gold and Silver options, and the long call holders are certainly feeling the pain; the passing of this event could bring some relief.

Technicals: Yesterday’s settlement above 1331.9 should have brought better footing but Gold has now traded to a new swing low. This is the second test into key support at 1322.4-1325.4 and this support level is getting stretched. Tremendous support sites below here at 1311.3-1316.6 and this keeps the immediacy of the longer-term uptrend intact.

Bias: Bullish/Neutral

Resistance: 1331.9**, 1337.1-1337.6**, 1345.7-1348.8**, 1356.7-1358.4**, 1367.8-1370***

Support: 1322.4-1325.4**, 1311.3-1316.6***

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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