Gold’s long-term fundamentals remain positive
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.
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Resistance: 1661**, 1691.7-1700****, 1710.9**, 1722**
Support: 1609**, 1602.3***, 1575.9**, 1548.7**