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Gold market sees terrific technical landscape

Commentaries & Views

Last week’s close: Settled at 1515.1, up 8.9 on Friday and up 15.6 on the week

Fundamentals: Gold is performing very well this morning on the heels of the eroding global growth conditions echoed through European Flash PMIs. First, buyers stepped in late last night after a stable technical picture and as geopolitical uncertainties in the Middle East continue to linger. Treasury markets are also confirming this leg as the 30-year Bond is trading at a near two-week high. Today, we look to U.S Flash PMI data at 8:45 am CT. Neither Manufacturing nor Services are expected to be anywhere near robust, lingering just above the contraction expansion line. ECB President Mario Draghi speaks at 10:00 am CT. St. Louis Fed President Bullard is due to speak at noon CT and San Francisco Fed President Daly is on the docket for 1:30 pm CT

Technicals: After laying a terrific technical landscape through last week, Gold is higher this morning and faces one crucial hurdle; major three-star resistance at 1529.1-1531.9. We have said a close above here would reinvigorate the near-term bullishness of the market, while the landscape has remained intermediate and long-term bullish. A failure to hold 1520.4 on a closing basis would be disappointing. Our Bias remains Bullish/Neutral and will go outright Bullish upon the described close.

Resistance: 1529.1-1531.9***, 1537.9*, 1546-1548.7**, 1565**, 1588.2***

Pivot: 1520.4

Support: 1515.1**, 1498.6-1500***, 1484.5-1487.2**** 

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