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Gold Is Holding Its Ground

Commentaries & Views

Yesterday’s close: Settled at 1201.4, down 2.1

Fundamentals: Gold is trading at unchanged this morning as the Dollar is overall stable. Today’s landscape will be crucial for the metal. Things started off with CPI which was largely in line with expectations, however, the Core YoY read missed the mark for the third straight month. The MoM number was in line, breaking a streak of two straight misses relative to expectations. This should buoy Gold and allow it to move higher from a level of technical support. The currency component remains fickle as we await further news on Brexit, Italy and trade. Today at 9:00 am CT, Fed Governor Quarles begins his two-day semi-annual Congressional testimony on banking. At 4:00 pm CT, all eyes must be on Fed Chair Powell who speaks.

Technicals: Gold is holding ground and testing major three-star support at 1197.2-1200 for the third straight session. It is go-time at this level and we are more upbeat given the risk-reward in buying with a stop below swing lows. We must see a move above 1206.5 in order to gather legs.

Bias: Bullish/Neutral

Resistance: 1213.1-1215.8**, 1221.1**, 1229.5**, 1233.5-1238.3**, 1244-1250***

Pivot: 1206.5

Support: 1197.2-1200***, 1184-1186***

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