The Calm Before The Storm
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1205.8, up 4.7
Fundamentals: In the midst of such a lack of enthusiasm for the metals camp over the better part of the last three months, a gain of 4.7 on the day is nothing to shy away from. Last week’s CPI data was soft and yesterday NY Empire State Manufacturing missed expectations. However, Gold once again failed to hold the highs of the session and retreated from 1209.7 to a low of 1200.3 on news that the White House would announce the newest wave of tariffs on China. After last night’s announcement, markets are calm this morning, the Dollar Index is lower and not seeing a safe-haven flight and the Chinese Yuan is sideways. The S&P has pared losses and treasury yields are ticking back up. This calm has been supportive to Gold. There is not major data this morning.
Technicals: Gold is back into the green this morning and trading above the 1204 pivot. Yesterday’s strength failed at first key resistance but another test today on the heels of such solid construction should push though. We remain upbeat in the near term until a close below major three-star support at 1187.6-1189.5, however, we need to see a solid response from the bulls on strength.
Resistance: 1210.9-1214.9**, 1220.7***, 1227-1228.5**, 1235.6**, 1244.6-1251.6***
Support: 1193.9-1195.1**, 1187.6-1189.5***, 1178.5-1179.8**, 1167.1***