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Headwinds Building For Gold

Commentaries & Views

Last week’s close: Settled at 1523.6, down 7.6 on Friday and up 15.1 on the week

Fundamentals: The price of Gold is coming in a bit today due to more favorable risk-sentiment leading equity markets and Treasury yields higher. The U.S Dollar is holding near unchanged and is not currently acting as a headwind. Today’s economic calendar in the U.S is bare as we look to Minutes from the Fed’s rate-cut meeting Wednesday and the start of the Jackson Hold symposium Thursday. Gold’s fundamental and technical landscape remain extremely favorable but there are budding headwinds if U.S growth begins to turn a corner. Bill Baruch spoke with Kitco’s Daniela Cambone on Friday to discuss.

Technicals: Price action is lower today and essentially achieving a direct hit on support at 1498.6-1500. After slipping below 1516.7, there was certainly a wave of profit taking overnight and this dented the near-term prospects. However, the long-term situation has not changed; Gold can go lower without breaking its construction; we are Bullish in Bias above major three-star support at 1484.5-1487.2

Bias: Bullish/Neutral

Resistance: 1523.9-1527.9***, 1546.1*, 1588.2***

Pivot: 1516.7

Support: 1498.6-1500**, 1484.5-1487.2*** 

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