Gold Prices Need To Regain $1,200
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Yesterday’s close: Settled at 1191.7, down 4.5
Fundamentals: Gold is trying to regain the $1200 mark this morning and is $15 away from its Friday low of 1184.3. Yesterday, we said that, “Traders must be nimble, but on the surface, as our trade desk told clients last week, this is where you want to be buying Gold not dumping it.” Though the Dollar Index is in the green this morning, the Chinese Yuan is gaining ground which has brought a tailwind. Furthermore, heightened concerns surrounding Italy have supported Gold priced in Euros but now that the Euro is off session lows combined with a stronger Chinese Yuan this is the recipe for a recovery session in Gold. Today is a quiet day on the front before the back half of the week picks up. ISM Manufacturing came in below expectations yesterday morning. What highlights the session is a speech from Fed Chair Powell at 11:00 am CT. Fed Vice Chairman Quarles speaks ahead of him at 9:00 am and Dallas Fed President Kaplan is also on the docket.
Technicals: Gold settled exactly at our pivot of 1191.7 yesterday and is moving above the 1196.3 level this morning. We must see a close above 1200.2 to solidify today’s gains. The first real battleground comes in at 1208.8-1208.5 and this aligns the 50-day moving average which has kept a lid on price action with other technical indicators; a close above here will bring the first bright spot for the metal in a while.
Resistance: 1200.2**, 1208.8-1208.5**, 1214-1215.8**, 1220.7***
Support: 1191.7**, 1184.3-1187.6***, 1178.5-1179.8**, 1167.1***