Is Gold Priming For A Run To $1,400
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1328.7, up 0.8
Fundamentals: Gold has again ripped higher. Dollar weakness and a stable picture in Treasuries is allowing the metal to catch-up to the broader macro picture, one that signals a 75.1% probability the Fed will cut rates at or before the July 31st meeting. Last night, Chinese Services PMI was the latest whiff. On the heels of dismal Manufacturing earlier in the week, ADP Payrolls this morning was another poor data point and ISM Non-Manufacturing is due at 9:00 am CT. if data continues to underwhelm at the least through Nonfarm Payroll on Friday then Gold is priming for a $1400 print in the near future.
Technicals: Gold has extended gains clearly out above the 1327.7 mark and is now testing the front-month high of the year at 1349.8. The August contract high was 1361.5. We have never wavered from our long-term Bullish Bias in both Gold and Treasuries. Overall, the path for Gold has been an extremely constructive in the near, intermediate and longer-term, this is something we cannot ignore; pullbacks are buying opportunities until the fundamental picture again shifts.
Resistance: 1327.7***, 1335.7**, 1349.8***, 1361.5***
Support: 1320.7**, 1310.1-1313***, 1300***, 1292-1295.1**, 1288.2***