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Gold Remains Resilient

Commentaries & Views

Yesterday’s close: Settled at 1288.4, down 2.9

Fundamentals: Gold continues to hold at the 1290 area in a very constructive manner. Despite a retreat in Treasury prices, the Yen and a strengthening Dollar, Gold has been as resilient as ever. Typically, that trio would weigh heavily on the metal and instead, we view this resilience as a sign of things to come. U.K Prime Minister May faces a ‘No Confidence’ vote today at 1:00 pm CT and uncertainty surrounding the path of Brexit has been a tailwind for the metal despite Dollar strength. Retail Sales today was the latest casualty the record-long government shutdown. The Fed does release their Beige Book this afternoon at 1:00 pm CT.

Technicals: Gold just has not had the catalyst to tear through the psychological $1300 mark, however, we expect this to come soon enough. For now, a consolidation at our momentum indicator which comes in at 1290 is healthy. We continue to view pullbacks as buying opportunities and are prepared to see a move into major three-star support at 1264.9-1270.3 as a tremendous opportunity.

Bias: Bullish/Neutral

Resistance: 1298-1300***, 1313-1320**

Pivot: 1290

Support: 1278.1-1282.3**, 1264.9-1270.3***, 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.