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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***

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.

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