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Gold holds support

Commentaries & Views

Gold bulls continue to defend the $1,915-$1,925 support area. Another run at $1,950 toward $1,965 can be expected should that support level hold. The converse scenario would likely result in minor support at $1,900 and major support around $1,875. For traders on the sidelines and investors looking to add to positions, a washout below $1900 gold may bring a spectacular "buy the dip" opportunity.

Friday morning last week, we suggested that stocks might be ready to exhale after their recent run-up; That was wrong, as stocks followed through higher again. Contrarian stock bulls' confidence may be mounting. Bearish sentiment continues to cast doubt on the legitimacy of the rally, especially in the face of 24/7 headline news of the Ukraine/Russia conflict and a "hawkish" Federal Reserve. Are stocks set to climb the "wall of worry" back to all-time highs?

With a slew of Fed presidents scheduled to speak this week (including chairman Powell), market participants should expect some volatility as forward guidance is presented.

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