Gold’s daily battle continues
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1480.5, down 0.7
Fundamentals: Gold is certainly battling despite daily records being set by U.S equity markets. The Treasury complex is paring some of yesterday’s brutal losses, losses that Gold was able to ignore; if the Treasury complex can continue to hold ground today it will prove favorable for Gold. However, we do not believe Gold could withstand another negative session in Treasuries even half as bad as yesterday without giving up some ground. Building Permits and Housing Starts both beat expectations this morning. Both Boston Fed President Rosengren and NY Fed President Williams speak at 11:30 am CT. It is important to know though that Williams remains a voting member in 2020, whereas slight hawk Rosengren does not.
Technicals: We remain cautiously Bullish in the near-term and expect a favorable rally over the intermediate and long-term through February or March. Our levels below or tight with our momentum indicator coming in at 1481 and minor support at 1477.3-1477.4; Gold is favorable above here. Still, we have yet to see a close back above major three-star resistance at 1484.9-1486 since slipping November 7th.
Resistance: 1484.9-1486***, 1491.6-1493***, 1500-1503**
Support: 1477.3-1477.7*, 1468.2-1469.2**, 1463***, 1459.8*, 1453.1-1454***