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Gold looks healthy at current levels

Commentaries & Views

Yesterday’s close: Settled at 1544.6, down 6.0

Fundamentals: Gold is moving firmly higher this morning with U.S Dollar weakness and some cold water over the “Phase One” trade deal lifting the tape. U.S Treasuries are also seeing a steady wave higher this morning, bringing support to the metal. Platinum has surged by more than 3% today and to the highest level since January 2018, signaling a potential end of the most recent wave of profit taking across the metals complex. Silver also tagged $18 after trading to a low of 17.69 yesterday. U.S PPI data was soft this morning, offsetting a marginally better read on NY Empire State Manufacturing. New 2020 Fed voters speak today, Philadelphia Fed President Harker at 10:00 am CT and Dallas Fed President Kaplan at 11:00 am CT. The Fed releases their Beige Book at 1:00 pm CT.

Technicals: Today’s move is healthy and works to solidify a near to intermediate-term bottom. Still, we must see a close above first key resistance at 1554.5-1558.4 in order to neutralize the recent wave of weakness and a close above major three-star resistance at 1565.8-1571.7 to turn near-term bullish again. Our momentum indicator comes in at 1549 and this will keep the tape favorable on the session.

Bias: Neutral/Bullish

Resistance: 1554.5-1558.4**, 1565.8-1571.7***,1583.9*, 1588.2-1595.7***, 1613.3**, 1626**

Pivot: 1549

Support: 1538.3-1541**, 1529.8-1533.2***, 1510-1514.3***

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