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Gold’s Upside Could Be Limited Near Term

Commentaries & Views

Last week’s close: Settled at 1289.5, up 2.1 on Friday and up 3.7 on the week

Fundamentals: Gold is holding well at the 1290 area as it stares down the psychological $1300 barrier. There is a lack of economic data to boost or dissipate recent gains for the metal but misses around the globe, specifically China and the Eurozone, continue support a slower growth environment which is favorable for the metal. Earnings season is underway, and this will also be a way to keep a pulse on growth. Today’s calendar is bare but tomorrow, despite the government shutdown, we get PPI and NY Empire State Manufacturing along with Fed speak. We remain bullish Gold, but the near-term upside may be limited.

Technicals: Price action is gyrating around our momentum indicator at 1291.4; a continued close above here will keep the bulls with an upper hand. Pullbacks have been viciously bought and this can be seen with the speed of each recovery and the lack of depth to each selloff. While we favor buying dips, there is some need for patience in waiting for major three-star support at 1265.3-1270.3 for better value.

Bias: Bullish/Neutral
Resistance: 1298-1300***, 1313-1320**
Pivot: 1291.4
Support: 1278.1-1282.3**, 1265.6-1270.3***, 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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