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Gold prices are lacking a near-term catalyst

Commentaries & Views

Yesterday’s close: Settled at 1488.1, down 6.0

Fundamentals: Gold found itself under pressure through the start of U.S trading hours yesterday as stocks climbed within an earshot of record highs and the Dollar stabilized from last week’s sharp drop. U.S and China are also nearing an interim deal. All of this has not only supported Treasury yields but steepened curve. In turn, encouraging waves of selling in the metal after it failed against resistance aligning near the psychological $1500 mark. Although expectations for a cut next week have mounted to a 93.5% probability, it was already priced in even when Gold was above $1500. While we remain long-term Bullish in Bias, the metal is left with no near-term catalyst in order to encourage buying right here, right now.

Technicals: The bull camp can still hang its hat on major three-star support at 1484.5-1488.2 holding like a champ. . . well, so far. Our momentum indicator has caught up with the stabilizing tape this morning and continued price action above 1490 will help neutralize yesterday’s fallout. Still, we must see a close above 1500.9-1503 and until then Gold will be susceptible to waves of selling attempting to chew through support as the bears target 1450-1454.

Bias: Neutral/Bullish

Resistance: 1494.7-1495.4*, 1500.9-1503**, 1513-1515.6***, 1527.5***

Pivot: 1490

Support: 1484.5-1488.2***, 1465**, 1450-1454***, 1413.2***

Pivot: 1495.4-1496.9

Support: 1484.5-1488.2***, 1465**, 1450-1454***, 1413.2***

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