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Gold battles higher

Bill Baruch

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

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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By Bill Baruch

Contributing to kitco.com

Contact info@bluelinefutures.com.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.