Use Caution And Take Some Profits In Gold At These Prices
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1284.1, up 2.8
Fundamentals: Gold has traded to a new high for the fourth session in a row reaching 1294.3. ADP Payrolls were a blowout number coming in at 271k versus 179k. However, weekly Initial Jobless Claims were the highest level in four weeks and last week was revised higher. Furthermore, the strong job growth from ADP does not mean that wages upticked given that this could be a great chunk of holiday hires. True safe-havens such as Gold, Treasuries and the Yen have outperformed all other asset classes despite U.S Dollar strength. With Nonfarm Payroll in the crosshairs tomorrow and Gold facing strong overhead psychological resistance we advise that traders lock in some gains in one way or another. Call our trade desk at 312-278-0500 for help.
Technicals: We have been outright Bullish in Bias Gold since the pullback that we called a buy at 1236. Today, we are neutralizing our Bias just slightly in order to exude caution heading into tomorrow’s deluge of data. We prefer to capitalize on strength and not react to weakness. Major three-star resistance comes in at 1295-1300.
Resistance: 1295-1300***, 1313-1320**
Support: 1267.4-1270.3**, 1250-1256.4**, 1245.3**, 1236.2-1236.7***