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Gold holding its own in the face of higher yields and record equities

Commentaries & Views

Yesterday’s close: Settled at 1478.7, down 0.7

Fundamentals: Gold continues to do a terrific job in the face of rising yields while equity markets linger at record highs. The economic data today was starkly different than Tuesday’s reads; Initial Jobless Claims, Philly Fed and Existing Home Sales all missed. The 10-year yield pinged Friday’s high of 1.95% overnight and this 2% ceiling is something to keep a close pulse on; a rejection or rise in Treasury prices will be very supportive to Gold at the onset of a seasonally bullish time of year.

Technicals: Gold is doing that aforementioned terrific job in holding ground, but it also cannot chew through major three-star resistance 1484.9-1486. A quick shot lower yesterday now redefines first key support and our momentum indicator has nudged down to 1480; Gold remains constructive above here.

Bias: Neutral/Bullish

Resistance: 1484.9-1486***, 1491.6-1493***, 1500-1503**

Pivot: 1480

Support: 1474.3*, 1468.2-1469.2**, 1463***, 1459.8*, 1453.1-1454*** 

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