Make Kitco Your Homepage

A Tremendous Landscape for Gold

Commentaries & Views

Yesterday’s close: Settled at 1400.5, up 0.5

Fundamentals: Gold is up strongly this morning and about $20 from its overnight low after the release of Fed Chair Powell’s prepared Congressional testimony that reiterated the Fed will “act as appropriate” to sustain growth. Pre-release, according to the CME’s FedWatch tool, there was a 4.4% probability the Fed left rates unchanged at their July 31st meeting. This was the first time the dial for unchanged moved off zero in about a month. These odds have now dissipated completely, and his remarks reinvigorated the probability of a 50-basis point cut to 21.4%. With a weaker Dollar, this is a tremendous landscape for Gold. Does it stick through today’s Congressional questioning, the testimony begins at 9:00 am CT? Traders should stay nimble also knowing that the FOMC releases the Minutes from their June meeting at 1:00 pm CT and a critical CPI read is due tomorrow morning at 7:30 am CT.

Technicals: Today’s move is everything Gold bulls could hope for now that price action is out above 1408. This begins with a higher low on this wave compared to that from July 1st. Now we must see this price action hold on a closing basis as it faces first key resistance at 1414.3. A close back below 1400.5-1401.7 will signal a potential near-term failure.

Bias: Bullish/Neutral

Resistance: 1408***, 1414.3**, 1420.5-1420.9**, 1432.9***, 1484.5***

Pivot: 1400.5-1401.7

Support: 1389.3-1392.6**, 1377.5-1380.3***, 1361.5***

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.

Precious Metal Charts

Follow Kitco News