Headlines driving gold prices
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Yesterday’s close: Settled at 1475, up 6.9
Fundamentals: After trading to a high of 1491.6 this morning, a tweet from President Trump saying, “Getting VERY close to a BIG DEAL with China. They want it, and so do we!” has completely reversed the tape. Additional details are trickling out on delaying the December 15th tariffs and rolling back current tariffs by as much as 50% in what has the makings of an interim “Phase One” trade deal. Gold has reversed all gains and now trading in the red. The day is just getting going and will be completely headline driven at this point.
Technicals: The metal stuck its nose out above major three-star resistance at 1484.9-1486 for a cup of coffee. With price action slipping, support now comes in at 1469.2-1474, and with a brief low hitting 1468.9, we must see this support hold or the door again is open for a retest into what is now our first wave of major three-star support at Monday’s low of 1463 before 1453.1-1454. This failure can only Neutralize our near-term outlook as we want to see how today plays out. Feel free to call our desk or Bill Baruch directly at 312-837-3944.
Resistance: 1484.9-1486***, 1498-1500***
Support: 1469.2-1474**, 1463*** 1459.8*, 1453.1-1454***