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Gold Needs To Push Above $1,235 To Share Shorts

Commentaries & Views

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.

Bias: Bullish/Neutral

Resistance: 1227-1228.5**, 1235.6** 1244.6-1249.6**, 1259.2-1260.9**, 1278.2-1285***

Pivot: 1220.1-1222

Support: 1204-1210.7***

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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