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Gold Bulls Are Holding Their Ground

Commentaries & Views

Yesterday’s close: Settled at 1211.5, down 2.9

Fundamentals: The last 48 trading hours have been a heck of a battle for the metal which has ultimately held ground in a very constructive manner. However, Gold will get put to the test at 7:30 am CT when the PCE Index, the Federal Reserve’s preferred inflation indicator, is released. In yesterday’s FX Rundown we discussed the importance of this read on the Dollar. Expectations are for 2.0% for this July read. In June, PCE dipped to 1.9%. Last week, the FOMC Minutes and Fed Chair Powell were major catalysts in Gold’s bounce as their inflation outlook softened. A release of 2.0% or lower will help Gold keep its recent gains.

Technicals: Trend line support for Gold aligns with our 1204 level and this is the line in the sand; a move below here would potentially open the door down to 1187.6-1189.5. However, on the bright side, Gold is building a flag-like bullish pattern and a hold of 1204 today and a green close could set the metal up for the next leg higher and the path to 1250.

Bias: Bullish/Neutral
Resistance: 1227-1228.5**, 1235.6**, 1244.6-1251.6***
Pivot: 1210.7-1212.5
Support: 1204***, 1193.9**, 1187.6-1189.5***, 1178.5-1179.8**, 1167.1***

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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