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Gold Tests A Major Resistance Line

Commentaries & Views

(Kitco News) - Coming back from a week off, it was noted that once gold broke through our $1,420 level, there was little in the way of resistance to hold back last week’s surge. We suggested about two weeks back that a gold price close above $1,420 would suggest a spike to $1,520, which was briefly touched this afternoon. This is a significant resistance area, but a break above $1,520-22 on a close basis, indicates $1,600 will happen in quick order. We were also bullish silver suggesting a gold break would usher in at least a $17 print on silver. Silver has some resistance at $17.20, briefly flirted with today, but a break here would suggest $18.50, with a gold move to our first break-out target. Unless, Trump reverses himself on the Chinese trade issues, we remain constructive the metals, looking for dips to add to the long position. Should gold break below $1,492, some profit taking may accelerate the move to $1,470.

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