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Gold Continues To Hold Its Ground Above $1,200

Commentaries & Views

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.

Bias: Bullish/Neutral

Resistance: 1210.9-1214.9**, 1220.7***, 1227-1228.5**, 1235.6**, 1244.6-1251.6***

Pivot: 1204

Support: 1193.9-1195.1**, 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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