Gold Continues To Hold Its Ground Above $1,200
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Last week’s close: Settled at 1201.3, down 10.0 on Friday and up 0.2 on the week
Fundamentals: On the bright side, U.S and China trade relations are arguably at their worst point yet and Gold is clinking to the psychological $1200 mark. The Dollar has strengthened against the Yuan this morning after the Yuan failed to gain above the 50-day moving average earlier on the session. On Friday it was Dollar strength that slapped Gold down after a speech from U.K Prime Minister May and Brexit hopes began to sour. However, both the Euro and Pound are stronger this morning and being led by better than expected German Business Climate data as we look to a speech from ECB President Mario Draghi at 8:00 am CT. There is no major U.S data today. Tomorrow brings Consumer Confidence and the Fed begins a two-day policy meeting.
Technicals: Strong waves of selling on Friday have not soured our outlook on Gold as it has technically held ground very well and battled at not only the psychological $1200 mark but our 1204 pivot level. A close above 1204 today will be a win for the bulls after holding first key support through the struggles late last week. Still, we must see a close above 1210.9-1214.9 in order to begin to lay bullish ground work. Also, the 50-day moving average aligns here.
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***