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Gold's Price Action Firming Up

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Yesterday’s close: Settled at 1291.1, down 8.2

Fundamentals: Despite yesterday’s weakness in the face of a very healthy risk-environment, Gold did not do anything wrong and is bouncing back firmly this morning. Ahead of a British Parliamentary Vote on Brexit today, hopes behind U.K Prime Minister May’s Brexit deal have quickly deteriorated, and this is favorable for Gold. If her deal is shot-down today, there will be a vote tomorrow on whether the U.K will leave the EU without a deal at all with the March 29th deadline looming. Also boosting Gold this morning was a softer than expected read on U.S CPI. This confirms the Fed’s ‘patient’ rhetoric and has allowed Treasuries, Gold and the Yen to all bounce this AM.

Technicals: As we noted here yesterday, Gold must hold first key support at 1291-1293.5 in order to remain near-term constructive and this was exactly the case with a low of 1290.6 and a settlement of 1291.1. The tape has firmed-up coming into this morning but first key resistance at 1298.1-1299.2 is still a headwind. We remain unequivocally bullish Gold and a move above major three-star resistance at 1304.7-1307.2 is immediate-term bullish for the tape.

Bias: Bullish/Neutral

Resistance: 1298.1-1299.2**, 1304.7-1307.2***, 1315.3**, 1323.4-1326***

Support: 1291-1293.5**, 1273.2-1280***

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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