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Gold price remains constructive

Commentaries & Views

Yesterday’s close: Settled at 1550.5, down 3.5

Fundamentals: Gold stuck its nose out above 1560 for a brief moment this morning before Housing Starts blew the doors off. The metal complex was ramping overnight on news of additional government spending; reintroducing the 20-year Bond and the potential unleashing of fresh tax cuts. Still, U.S Dollar strength over the last two weeks has weighed on the metal, not to mention continued equity market strength. However, not all currencies have lost ground against the U.S Dollar as the Chinese Yuan touched the strongest level since July. This has helped lift the metal complex that includes Platinum, Palladium and Copper; all set new swing highs this week. Philadelphia Fed President Harker, a 2020 voter, speaks at 8:00 am CT. Industrial and Manufacturing Production are due at 8:15 am CT. Fresh January Michigan Consumer data is out at 9:00 am CT along with JOLTs Job Opening.

Technicals: As we’ve noted all week, we remain unequivocally Bullish Gold over the long-term, however, we must see a close above 1565.8-1571.7 in order to reinvigorate near-term bullishness. Our momentum indicator comes in at 1554, if Gold decisively stays below here for a period of at least an hour to 90 minutes, we imagine continued waves of selling down to 1546.5-1547.6 on the session. Unfortunately, upon such there would be a tail left overhead. However, if Gold can remain buoyed above 1554, it will finish the week on a very constructive note.

Bias: Neutral/Bullish

Resistance: 1558.4**, 1565.8-1571.7***, 1583.9*, 1588.2-1595.7***, 1613.3**, 1626**
Pivot: 1554
Support: 1546.5-1547.6**, 1538.3-1541**, 1529.8-1533.2***, 1510-1514.3***

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