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Gold battles higher

Commentaries & Views

Yesterday's close: Settled at 1549.1, down 2.7

Fundamentals: Gold continues to battle higher despite U.S Dollar strength as the 2-year and 10-year Treasury yield inversion is proving a fresh tailwind. The other bright spot for the metal over the last week has been a technical breakout in Silver. While fundamentally overdue, silver has been able to breathe fresh life into Gold. Despite positive waves of risk-sentiment due to a more upbeat narrative surrounding U.S and China trade, the odds for a Fed cut in September remain wholly priced-in.

Technicals: Gold not only held 1546.1 on a closing basis yesterday but out above 1549 as well. The momentum indicator this morning comes in at 1550 and a continued trade above 1546.1-1550 is immediate-term bullish. Gold's overall strength and the technical breakout in Silver are working to repair damages from the Sunday night reversal. We stand broadly Bullish Gold until a close below 1530.

Bias:
Bullish/Neutral
Resistance: 1564**, 1588.2***
Pivot: 1546.1-1549
Support: 1530-1531.2***, 1525**, 1516.7-1518.8**, 1498.6-1500**, 1484.5-1487.2***

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