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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***

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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