Gold Remains Resilient
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.
Resistance: 1298-1300***, 1313-1320**
Support: 1278.1-1282.3**, 1264.9-1270.3***, 1250-1256.4**, 1245.3**, 1236.2-1236.7***