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Gold Bulls: You Can't Ask For Anything More

Commentaries & Views

Last week’s close: Settled at 1537.6, up 29.1 on Friday and up 14.0 on the week

Fundamentals: Last week was a flagship week for Gold, it laid strong fundamental and technical groundwork and fully capitalized on it before the close Friday. Price action roared higher last night as risk-sentiment deteriorated further and Gold hit 1565.0, a fresh six year high. President Trump has done his best to strengthen hopes U.S and China will continue trade talks despite the two sides upping the ante by increasing tariffs Friday. The headlines are driving the market but let’s not forget about the internals that have boosted Gold all year; worsening global growth. German Ifo Business Climate matched the lowest level since November 2012 and highlighted recessionary conditions. Durable Goods also missed headline expectations falling 0.4%. These anecdotes, if they persist, will continue to keep Gold in a fundamental bull market.

Technicals: Us bulls could not ask for anything more from Gold last week. The battle was won at 1498.6-1500 upon a test each day of the week and once price action gained out above 1513.5-1516.7 and extended through 1520.8 it did not look back. The tape must hold out above 1530-1531.2 in order to keep this wave alive and drowned out the disappointing reversal from last night’s highs.

Bias: Bullish/Neutral
Resistance: 1588.2***
Pivot: 1546.1
Support: 1530-1531.2***, 1525**, 1516.7-1518.8**, 1498.6-1500**, 1484.5-1487.2***

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