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Gold is on the move but needs to hold $1486

Commentaries & Views

Yesterday’s close: Settled at 1469.2, down 3.5

Fundamentals: Gold began forming a bottom yesterday after ISM Manufacturing data whiffed but was held back by the rising global yield story on the heels of better PMI data outside of the U.S Although yields were rising, the Dollar was under pressure which is supportive to the metal. Tensions between the U.S and China on trade due to legislation (see S&P section) seem to be rising and yields are paring all of yesterday’s gains which has laid an extremely constructive landscape for Gold. As it is trading up 1%, the winding down of a seasonally bearish time of year is playing well into our plan.

Technicals: We want to emphasize a more Bullish Bias on Gold but will refrain given that it is testing into major three-star resistance. With a longer-term look, we are very upbeat the metal and remain unequivocally Bullish in Bias. Above this level at 1484.9-1486, we see 1500 as the next target psychologically and as it aligns with the trend line from the highs. Our momentum indicator aligns well with yesterday’s settlement and our 1472.7 level as first key support.

Bias: Neutral/Bullish

Resistance: 1484.9-1486***, 1500**

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