Will Iran Deal Turmoil Wake Gold From Its Slumber
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1314.1, down 0.6
Fundamentals: Gold started the week on firm footing but this has slowly dissipated. U.S Dollar strength continues to be the driver and the Dollar Index is trading to a new swing high this morning. Gold saw only little volatility on Fed Chair Powell’s speech at a forum in Switzerland early this morning; there were no surprises. President Trump will announce his decision on the Iran Nuclear Deal at 1:00 pm CT. All markets will be on watch for his decision and the details. Iran has said it will not renegotiate the deal and they will retaliate if it is dropped. Geopolitical tensions in the Middle East are heightened; Gold could wake up from its slumber because of this.
Technicals: Price action in Gold remains subdued, but it is not falling apart. This is a good sign as we stated yesterday, the net-long position has been reduced by 80% from the highs earlier this year. There just has not been a technical or fundamental catalyst to speed up the bottoming process in the face of a strengthening U.S Dollar. We remain unequivocally long-term bullish.
Resistance: 1323.9**, 1327.2-1327.9***, 1335.9**, 1343.8**, 1356.7-1359**, 1367.8-1370***
Support: 1303.6-1306.6**, 1300***, 1296.2***