Contributed Commentaries
There are Several Ways To Play Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1255.4, down 4.2
Fundamentals: Once again, Gold is not benefiting from escalating trade war fears and once again, the Dollar Index will not give you a gauge as to why; the U.S Dollar has gained gained 0.7% on the session and 1.2% from yesterday’s low against the Chinese Yuan. This pairing continues to dominate the metals trade as a weaker Yuan is essentially exporting deflation. We maintain that there is tremendous long-term value here in Gold and there are several ways to play it; we discussed this yesterday with Kitco’s Daniela Cambone. This week, inflation comes into the picture; PPI beat expectations this morning, but the bigger read is tomorrow’s CPI. Wholesale Inventories are at 9:00 am CT, Atlanta Fed President Bostic speaks at 11:30 am, there is a 10-year Note auction at noon and New York Fed President Williams speaks at 3:30 pm.
Technicals: We remain Bullish in Bias because we believe in this extremely strong technical support level. However, as we emphasized in the interview linked above, it is important to manage your risk given the fundamental environment. While we discussed one way to do so, feel free to call our trade desk at 312-278-0500 or email us at info@bluelinefutures.com for further details. We will continue to watch the 1253.7-1255.7 mark as a level we want to see Gold close above, doing so will keep the bears from trying to retest rare major four-star support. A move out above 1262.5 today will invite buyers to the table.
Bias: Bullish/Neutral
Resistance: 1262.5**, 1267.4**, 1274.4-1275.9***, 1284.7-1287.7**, 1295.8***, 1305.5-1313***
Pivot: 1253.7-1255.7
Support: 1238.3-1241.7****
