Make Kitco Your Homepage

Chinese trade deal front and center for gold investors

Commentaries & Views

Yesterday’s close: Settled at 1472.3, down 2.7

Fundamentals: Gold traded very well overnight staving off sellers while global equity markets surged to fresh records amid hopes that an interim “Phase One” trade deal was reached. This morning, Retail Sales missed loft expectations and this in the broader sense will act as support for the metal. However, U.S-China trade is front and center with President Trump tweeting, “The Wall Street Journal story on the China Deal is completely wrong, especially their statement on Tariffs. Fake News. They should find a better leaker!” He is referring to the article titled ‘Trump Agrees to Limited Trade Deal with China’. Chinese officials have a news conference planned for 9:00 am CT and this could bring some clarity.

Technicals: Gold battled and held major three-star support at 1463 and is now testing minor resistance at 14773.-1477.7. However, the bigger level is overhead with major three-star resistance at 1489.6-1486. Gold has failed to close above this level this week despite trading to 1491.6 yesterday morning. Our momentum indicator comes in at 1474 and continued price action above here favors the bull camp on the session.

Bias: Neutral/Bullish

Resistance: 1477.3-1477.7*, 1484.9-1486***, 1498-1500***

Pivot 1474

Support: 1468.2-1469.2*, 1463***, 1459.8*, 1453.1-1454*** 

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.