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Gold’s long-term fundamentals remain positive

Commentaries & Views

Fundamentals: Gold's April options expiration and ensuing price action made sure to hurt the greatest number of people. That is what markets tend to do. Settled strongly yesterday to leave put owners burned with in-the-money calls being assigned long futures before coming off sharply. The long-term fundamentals certainly have not changed, historic fiscal and monetary policy measures have set the table for Gold to make new record highs. In the near-term, traders should continue to be cautious.

Technicals: Gold settled right at 1661 resistance yesterday before slipping back to retest our line in the sand support for the near-term uptrend. Price action is below our momentum indicator at 1649 and from a trading perspective, this gives the bears a near-term edge. We are cautiously optimistic given our intermediate to long-term outlook.

Bias: Neutral/Bullish

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Resistance: 1661**, 1691.7-1700****, 1710.9**, 1722**

Pivot: 1649

Support: 1609**, 1602.3***, 1575.9**, 1548.7**

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.