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Gold is back to a one-week low

Commentaries & Views

Yesterday’s close: Settled at 1511.1, down 0.3

Fundamentals: Gold is taking it on the chin this morning and back to a one week low. The metal held ground tremendously well yesterday given equities, the Dollar and Treasury yields all had a strong start to the week. Gains in each of those assets have continued into today and ahead of ISM Non-Manufacturing, and Gold simply could not stave it off any longer. Maybe someone has a hunch on this crucial Services sector read at 9:00 am CT. Furthermore, the odds of a cut next month have dissipated to a mere 5%. Lastly, it is important to remember this is typically a seasonally weaker time of year for Gold and patience opens the door for the late December buy opportunity, our favorite seasonal trade across the board and one that has worked like clockwork through January.

Technicals: Gold could not gain out above major three-star resistance at 1511.6-1515.6 and failed. When it began reversing this morning, once it took out first key support at 1505 the selling picked up. Truly, support now only comes in at our major three-star level at 1484.5-1490.7 and this is a level that the bulls and bears must once again battle.

Bias: Neutral

Resistance: 1503.6-1505*, 1511.6-1515.6***, 1527.5***, 1540-1543.3***

Support: 1484.5-1490.7***, 1465**, 1450-1454***, 1413.2***

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