Gold Needs To Push Above $1,235 To Share Shorts
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Yesterday’s close: Settled at 1218.3, up 0.6
Fundamentals: After the Chinese Yuan opened last night stronger, this has dissipated into the morning and it is now in the red against the U.S Dollar. In fact, the Dollar is broadly higher against currencies around the world weighing on Gold and other commodities. There is no major data from the U.S today and the potential bottoming pattern must now go through the unenthusiastic motions once again. While Gold did not make new lows yesterday, the Gold Miners ETF, GDX, did. It lost 1% and closed at the lowest level since December 2016.
Technicals: Gold is priming for a true test to major three-star support at 1204-1210.7. Price action has struggled mightily to hold 1220.1-1222 on a closing basis which has left the bears in the driver’s seat; we must see a close above here in order to potentially encourage a neutral tape. While 1227-1228.5 is a level that Gold must get out above, it truly would not even begin to scare shorts until a move above 1235.6.
Resistance: 1227-1228.5**, 1235.6** 1244.6-1249.6**, 1259.2-1260.9**, 1278.2-1285***