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Gold Keeps Pushing The Tape

Bill Baruch

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Yesterday’s close: Settled at 1336.8, up 5.6

Fundamentals: The good news is that Gold has held ground very well. However, as we noted here yesterday, it is a bit of a disappointment to not see Gold extend gains after CPI data was soft. Treasury markets are upbeat and the odds for a Fed cut at the July 31st meeting have risen to 86% as of this morning. Still, the Dollar remains a headwind for Gold as it is the best house on a bad block and Gold is priced in dollars. Both weekly Jobless Claims and Import/Export Price Index both came in worse than expectations this morning. Renewed geopolitical tensions in the Middle East should also keep a bid under the metal ahead of the weekend. Tomorrow will help define what has so far been as a strong week; Retail Sales and fresh June Michigan Consumer data are both due.

Technicals: Gold settled right first key resistance yesterday in what has overall been a constructive recovery from Monday’s sharp reversal; major three-star support held beautifully. Still, the tape is pushing the upper band of its 5-year range and for this reason, although we are unequivocally long-term Bullish in Bias, we remain only cautiously upbeat at these levels.

Bias: Neutral/Bullish
Resistance: 1335.7-1337.4**, 1344.9-1349.8***, 1361.5***
Support: 1324.6-1327.7****, 1316**, 1307.3-1310.1***

By Bill Baruch

Contributing to kitco.com

Contact info@bluelinefutures.com.
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.