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Gold Could Get A Boost If Fed Shows Concern About Rising Volatility

Bill Baruch

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Yesterday’s close: Settled at 1228.7, up 2.4

Fundamentals: Given the overnight price action coming into yesterday, Gold posted a disappointing session. The Dollar has broadly worked higher during the same time from and though the Dollar Index is not accelerating, commodities are broadly lower. The Chinese Yuan is 0.2% weaker this morning despite strong Trade Balance data out of China. The Federal Reserve’s policy decision is due at 1:00 pm CT and though there are no economic projections or press conference, the statement will be looked at closely for any hints towards their path of hiking in 2019. If the Fed shows any concern due to recent volatility, weakening commodity prices over the last month or uncertainties for growth, look for Gold to respond.

Technicals: Gold is testing into key support at 1219.6-1221 this morning. It has held the 100-day moving average at 1224.2 on a closing basis but is now below here. It will be crucial to see how Gold reacts to this support level and overall its recovery path from November 1st. The metal traded to a lower high and failed at 1233.5-1238.3; it appears that seasonals are keeping it depressed and we are cautious in the near term though remain upbeat in the longer picture.

Bias: Neutral/Bullish

Resistance: 1229.5**, 1233.5-1238.3**, 1244-1250***

Pivot: 1224.2

Support: 1219.6-1221**, 1210.5-1213.2**, 1204.3-1205.9***

By Bill Baruch

Contributing to kitco.com

Contact info@bluelinefutures.com.
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.