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Gold Still Has Potential

Commentaries & Views

Yesterday’s close: Settled at 1297.3, down 2.0

Fundamentals: Gold has held ground well near the $1300 mark given the strong data to finish last week. Though the Dollar Index remains about 1% from its recent high, Treasury yields have inched up in recovery after last week’s Italian crisis; these offset each other. However, Treasury yields are dissipating this morning just a slight bit as trade tensions are in the news and Italy’s PM faces parliament. Today brings the two biggest data points of the week at 9:00 am CT in ISM Non-Manufacturing and JOLTs Job Openings. Services and Markit Composite PMIs come out first at 8:45 am CT. Next week, the Fed, Bank of Japan and ECB each have policy meetings.

Technicals: Price action clung to first key support once again on a settlement basis. The metal is showing signs of technical potential but the strong barrier at major three-star resistance persists; a close out above here will invite the buyers. At this point, a consolidation that can hold ground is a positive and we believe the metal will fundamentally benefit over the coming weeks.

Bias: Bullish/Neutral

Resistance: 1308.7-1309.6***, 1315**, 1321**, 1332.4***

Support: 1297.9-1299.9**, 1286.8**, 1277.5-1278.3***, 1247.2-1250****

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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