Gold price will be susceptible to wave of selling
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Featuring views and opinions written by market professionals, not staff journalists.
Yesterday’s close: Settled at 1560.2, down 14.1
Fundamentals: Gold is down sharply as U.S-Iran tensions have been deescalated. Once this happened, additional pressures have been added by stronger than expected economic data over the last three mornings, beginning with ISM Non-Manufacturing Tuesday, ADP Payrolls yesterday and Weekly Jobless Claims today. Furthermore, Vice Fed Chair Clarida was upbeat on the U.S economy and we now look to Minneapolis Fed President Kashkari, a 2020 voter, at 8:30 am CT, permanent voter, NY Fed President Williams, speaks at 10:30 am CT and Chicago Fed President, who is not a voter this year but was last year, speaks at 1:20 CT. Lastly, do not forget, Nonfarm Payroll is due tomorrow at 7:30 am CT.
Technicals: Despite a Bullish Bias as long as Gold maintained a close above 1566.2-1571.7 and stayed buoyed by support as low as 1549.9-1552.4, we pounded the table that traders MUST capitalize on this rally beginning Sunday night. Price action will remain susceptible to waves of selling while below our pivot of 1555.2-1558.4 which aligns multiple indicators including our momentum indicator. However, if the bulls can defend those waves of selling at 1552.1-1552.4 there is hope, but hope is not a trading strategy. Below this major three-star support the door is open to 1529.8-1533.2 at minimum. We hold a slight Bullish Bias due to the longer-term trend.
Resistance: 1566.2-1571.7***,1588.2-1595.7***, 1613.3**, 1626**
Support: 1552.1-1552.4***, 1538.3-1541**, 1529.8-1533.2***, 1510-1514.3***