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Neutral Signals Flash As Gold Prices Unable To Rally

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Yesterday’s close: Settled at 1294.2, down 4.3

Fundamentals: Yesterday was a risk-on session and Treasury prices led Gold lower. As discussed in the S&P section, those Treasuries have been on a tear higher and sentiment was becoming overdone. Although it is not surprising to see the bullish reaction to less-worse China data, the move in Treasuries is certainly dragging on Gold despite a quiet Dollar. The Dollar has not accelerated higher and the data overall yesterday was not robust; Retail Sales, Manufacturing PMI and Business Inventories all missed. Durable Goods is due at 7:30 am CT and we look ahead to a crucial Nonfarm Payroll report Friday; traders should stay cautious into such.

Technicals: We went Neutral on Gold yesterday after a failure Friday to get out above major three-star resistance at 1306.4. At best, the metal consolidates for a bit. We remain long-term upbeat, but traders must understand a break below major three-star support at 1280.8-1287.5 is bearish.

Bias: Neutral

Resistance: 1306.4***, 1311*, 1315.7-1316.9***

Pivot: 1299

Support: 1280.8-1287.5***

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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