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Now is the time to take some profits in gold

Commentaries & Views

Last week’s close: Settled at 1552.4, up 24.3 on Friday and up 34.3 on the week

Fundamentals: Gold traded to 1590.9 last night, the highest levels since April 2013. The metal was already deep into a seasonally bullish time of year but fresh geopolitical tensions and mounting uncertainty in the Middle East has provided a massive tailwind. Traders should also not overlook Friday’s ISM Manufacturing read which contracted more than expected for the fifth month in a row. Although the headlines will focus on Iran, the economic calendar this week is jam packed. ISM Non-Manufacturing and Factory Orders are due tomorrow. Nonfarm Payroll is out Friday.

Technicals: We have been outright Bullish Gold since the December 23rd seasonal kicked in. Price action is trading out above major three-star resistance that aligns previous highs at 1566.2-1571.7. Above here, we have major three-star resistance we noted back in September at 1588.2-1595.7. This could provide a bit of a ceiling in the near-term technically. For this reason, we slightly Neutralized our Bias and suggest that longs who have ridden this wave capitalize in one way or another. Lastly, a failure to close above 1566.2-1571.7 could encourage a wave of profit taking.

Bias: Bullish/Neutral

Resistance: 1588.2-1595.7***, 1626**

Pivot: 1566.2-1571.7***

Support: 1549.9***, 1537.3-1540**, 1525.4-1529***

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.