Make Kitco Your Homepage

Gold Market Remains Constructive

Commentaries & Views

Yesterday’s close: Settled at 1188.6, down 17.0

Fundamentals: Gold incurred its worst session loss since August 13th but did not break major three-star support and is battling with a higher low on today’s session. The shock of China devaluing the Yuan by 1% was absorbed and now it is time for the bulls to step back to the plate just as they did early last week. The Dollar is higher today on Euro weakness but the Euro weakness in and of itself is supporting Gold as a safe-haven. Furthermore, the IMF lowered its growth forecast for this year and next year. Today, we are most looking forward to comments from Chicago Fed President Evans. Evans dissented at his last Fed vote in December 2017. Although he is not a voting member this year, with December all but secured, investors are now focused on the path of hikes next year when Evans again becomes a voting member.

Technicals: Gold is battling at major three-star support and we said here last week that this is not when you want to sell Gold but instead when you want to buy Gold. First key resistance comes in at 1196 and this kept price action capped overnight. A close above here will keep Gold on a constructive path while a move back above 1199-1202.2 should bring further buying to the table.

Bias: Bullish/Neutral

Resistance: 1196**, 1199-1202.2**, 1210.7-1212.3**, 1220.7***

Support: 1184.3-1187.6***, 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.

Precious Metal Charts

Follow Kitco News

Kitco Offers