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U.S. Dollar Remains A Headwind For Gold

Commentaries & Views

Monday’s close: Settled at 1281.3, down 1.7

Fundamentals: Gold has extended its highs as it treks into the damage from June 15th. The metal as well as other safe havens are trading very well this morning with global equity markets taking a hit on the first trading day of the year. For Gold, this is very resilient given that the U.S Dollar Index is up more than 0.5%, however, where Dollar strength is an outright headwind for the metal, a flattening yield curve has been a tailwind. Today, we look to Manufacturing PMI at 8:45 am CT in an otherwise quiet calendar. Things pick up tomorrow and are culminate with Nonfarm Payroll and Fed Chair Powell Friday.

Technicals: Our rhetoric has not changed, we love Gold. With major three-star resistance coming in at 1295-1300, it also remains important for traders to lock in some sort of gains from this move. First key support is about 1% away and as long as Gold holds out above here it is in an extremely healthy uptrend.

Bias: Bullish
Resistance: 1295-1300***
Support: 1267.4-1270.3**, 1250-1256.4**, 1245.3**, 1236.2-1236.7***

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