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Gold Bulls Need To Be Patient

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Yesterday’s close: Settled at 1301.5, down 1.4

Fundamentals: Gold is higher this morning after somewhat of a disappointing second half to yesterday’s session. Regardless of such, the metal has not fundamentally or technically done anything wrong and ‘patiently’ awaits the Federal Reserve’s policy statement and projections on Wednesday. Treasury prices have taken a sharp U-turn from overnight action and this could trickle-in to stop Gold’s firm start, however, a softer U.S Dollar is helping to offset this. January Factory Orders are due at 9:00 am CT and this will be closely watched to set a tone across Gold, Treasuries and the Dollar today. Bill Baruch spoke on this trio yesterday with Bloomberg as we eye the Fed Wednesday.

Technicals: Gold is testing major three-star resistance for the fifth consecutive session, trading out above it for the second time in a week. Needless to say, today’s close will be crucial. Still, there is solid headwind with key resistance coming in at 1315.3. Support comes in below at 1298.1-1299.2 and the metal will remain constructive above here.

Bias: Bullish/Neutral

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

Support: 1298.1-1299.2**, 1291-1293.5**, 1273.2-1280***

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