Make Kitco Your Homepage

Gold is in a stable landscape

Commentaries & Views

Yesterday’s close: Settled at 1507.9, up 18.9

Fundamentals: Gold has posted back to back gains of more than 1% in a steady recovery from what became panic selling partly due to an overcrowded long position. With equity markets under pressure, the dollar trickling lower and probability of a cut later this month mounting above 75%, it is foreseeably a very stable landscape for gold. Still, the metal will be very data dependent and the catalyst for the aforementioned market moves was Tuesday’s dismal ISM Manufacturing followed by August’s lower revision in ADP Payrolls. It is widely believed the Services sector is the last to go, a miss could really rev-up gold. Lastly, traders want to keep in mind that Nonfarm Payroll is tomorrow and that any momentum coming out of this week is likely to see a tailwind Monday from the conclusion of China’s Golden Week. Typically, selling has occurred coming into this holiday, as seen Friday and Monday, while steady buying has followed the end.

Technicals: Our technical narrative has not changed much from yesterday; the bulls are in the driver’s seat above 1495-1498. Yesterday’s settlement above 1503.7-1504 is good, but as our momentum indicator as caught up to here today, it is signaling the two-day recovery is getting technically exhausted without a fresh fundamental catalyst. Additionally, major three-star resistance at 1513-1515.6 was pinged. If data misses, look for Gold to advance further.

Bias: Bullish/Neutral

Resistance: 1513-1515.6***, 1527.5***

Pivot: 1503.7-1504**,

Support: 1495-1498**, 1484.5-1487.2***, 1450-1454**, 1413.2***

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.