There Is No Reason To Worry About Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1249.4, down 3.2
Fundamentals: Gold is again holding ground above the psychological $1250 area and seeing a boost from Dollar weakness. First and foremost, the positive developments on the U.S and China trade front have again strengthened the Yuan by 0.2% against the Dollar. Better than expected Sentiment data from German has boosted the Euro while the British Pound is seeing a bounce from yesterday’s news and an overall good jobs report from the U.K. Given the good news and strength in equity markets broadly, Treasuries are off their overnight highs and this dynamic will be crucial to watch for Gold as we near the ECB’s policy meeting Thursday and the Fed’s next week. U.S PPI data was higher than expected this morning as producer prices continue to surge due to the trade war. Tomorrow’s CPI read is much more crucial.
Technicals: Our narrative is that of a broken record, we remain unequivocally bullish Gold. Still, traders must realize that major three-star resistance at 1250-1252 has been and continues to be sticky. While there is no reason to sit and worry about Gold, we see more value in buying pullbacks; traders must lock in or capitalize on this recent move.
Resistance: 1250-1252***, 1268.3**, 1295-1300***
Support: 1236.7**, 1230*, 1225***, 1216.8-1219.6**, 1202.4-1208***