Gold: The Financial Workhorse
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1313.9, down 1.2
Fundamentals: Gold is a workhorse and continues to lay an extremely technically constructive landscape. We reiterate that we are unequivocally Bullish in Bias Gold. The Dollar Index spiked to a new March contract high this morning after ECB Member Coeure pointed to the possibility of new TLTRO (Target Long-Term Refinancing Operations). In other words, fresh easing if necessary. This is great for Gold in the long-term but as we have pointed to over this week and last as the Dollar has rallied its holding Gold back. Industrial Production data just missed, and this could start to unlock the handcuffs on Gold as the Dollar peels back but the big economic read today will be fresh February Michigan Consumer data at 9:00 am CT.
Technicals: Gold is pounding against first key resistance at 1321.7-1323.4 again today and is priming for a breakout above this strong level of resistance. We expect such to invite fresh buying to the table moving the metal out above its recent swing high and minor resistance up to 1337. First key support at 1312.9-1315.4 is a line in the sand for this immediate term push.
Resistance: 1321.7-1323.4**, 1331.1*, 1337**
Support: 1312.9-1315.4**, 1306.3-1306.5***, 1300.5**, 1281.5-1284.5***