Gold Needs To Close Above $1,230 To Maintain Its Momentum
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Last week’s close: Settled at 1222, down 5.6 on Friday and up 16.4 on the week
Fundamentals: Gold is higher this morning as it continues its push from the lowest level since January 2017. The Dollar is weaker, equity market volatility is higher and geopolitical concerns have up-ticked; this is a perfect stew for higher Gold. Still, the Chinese Yuan remains weak and Treasury yields elevated, and both are holding back a true recovery of the metal. In Sunday’s Tradable Events this Week, we laid out the landscape on this week can and will likely be focused on Fed speak. This morning, Retail Sales missed but NY Empire State Manufacturing came in better.
Technicals: Gold opened Sunday night on a very firm note but is seeing profit taking and repositioning from the bears well ahead of the psychological barrier at 1250. Ultimately, major three-star support at 1219.6-1220.7 held on Friday and paved the way for a strong technical move to start the week. The technicals will remain key and at a bare minimum, we must see a close above 1230 in order to maintain such bullish momentum.
Resistance: 1240.5*, 1244-1250***
Support: 1219.6-1220.7***, 1213.2**, 1204.3-1205.9***