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Technicals Dragging Down Gold

Commentaries & Views

Yesterday’s close: Settled at 1286.2, down 11.6

Fundamentals: Gold is seeing pressures due to the weakening Chinese Yuan. Today it is down 0.43% against the Dollar totaling a loss of 2.65% this month. The Treasury complex is recovering though with risk-sentiment under pressure upon trade tensions worsening. The technicals are also dragging on the metal after a breakdown yesterday. Today’s Michigan Consumer data will be crucial in determining how Gold finishes the week. Yesterday’s deluge of beats immediately hurt the metal, but the odds of a rate cut in 2019 have actually increased since.

Technicals: The Dollar Index is again battling at the highest area since May 2017 and Gold traders must keep an eye on a potential breakout close above 98.00 on a weekly basis. The metal is again lower, and the immediate-term constructive landscape has been completely neutralized after trading below 1290 yesterday. First key support comes in at 1279.1-1280.8 and Gold can only look to merely hold this today in order to set the table for repair next week.

Bias: Neutral

Resistance: 1290.1-1292.8**, 1301.5**, 1308.5-1311.6**, 1318.3**

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

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