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Gold Market Faces The Gauntlet

Commentaries & Views

Yesterday’s close: Settled at 1441.8, up 8.5

Fundamentals: Gold is as fundamentally and technically constructive as ever, but it faces a gauntlet of news over the next two days. First, Chicago PMI today whiffed and came in at the worst contraction since December 2015. Today though is all about the Federal Reserve and while they are expected to cut rates, the expectations for future cuts remain high. The committee’s policy statement and Fed Chair Powell’s rhetoric will be absolutely crucial in the near-term for Gold. Does it confirm these expectations, or does it lift the Dollar and yields pressuring Gold? We said here Monday, that unchanged for the week in Gold is a win.

Technicals: Gold pinged the next area of resistance overnight with a high of 1447.8. Overall, it’s tough to put overhead levels out with such volatility ahead but what matters most is constructive settlements, something that Gold has struggled to do since June’s rally until now. A close above 1440.3-1440.8 is supportive but holding near session highs is bullish.

Bias: Neutral/Bullish

Resistance: 1447-1454.4**, 1467**, 1484.5***

Pivot: 1440.3-1440.8

Support: 1432.9***, 1423.9***, 1410-1414.6***, 1400.5-1403.5***

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