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Gold Investors Hurting After A Swift Kick To The Gut

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Gold Investors Hurting After A Swift Kick To The Gut

Yesterday’s close: Settled at 1297.8, up 1.5

Fundamentals: Gold is taking a swift kick to the gut after Philly Fed, Building Permits, Housing Starts and weekly Jobless Claims all beat expectations this morning. The metal struggled to capitalize yesterday on what should have been a favorable landscape when Retail Sales and Industrial Production contracted and largely missed expectations. However, investors turned up their risk appetite after President Trump said he would delay auto tariffs and despite a quiet Dollar, this brought a ceiling to the metal at the psychological $1300 mark. This afternoon, Minneapolis Fed President Kashkari speaks at 11:05 am CT and Fed Governor Brainard at 11:15 am CT.

Technicals: We have no choice but to begin Neutralizing our Bias after yesterday was yet another technical failure to climb and hold out above 1301.5. For now, price action is battling into major three-star support at 1290.1-1292.8 and if it can miraculously claw back today’s losses, this could reinvigorate the bull camp. Still, Gold’s time to shine may not be until the June contract falls off the board.

Bias: Neutral/Bullish

Resistance: 1301.5**, 1308.5-1311.6**, 1318.3**

Support: 1290.1-1292.8***, 1279.1-1280.8**, 1264-1267.9***, 1255.8-1258.5***

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