Gold commentary [01/08/17]

News   •   Aug 01, 2017 10:26 +08

Gold consolidated in a six dollar range overnight but remains at near two-month highs along with Silver and Platinum. The unvirtuous circle of turmoil and disappointment with Washington D.C. feeding into a weaker U.S. dollar continues to help precious metals to shine. To this, we can add U.S./Russia relations, North Korea, Venezuela and the revolving door at the White House to the mix, all of which will also be supportive of gold as a safe haven.

In the short-term gold has formed a double top on the daily charts at 1271.00, the Friday and Monday high. This may pose a technical barrier to gold initially which is trading at 1268.85 in early Asia. A daily close above this level though could open the path for a march upon the May highs at 1281.50.

Initial support resides at 1265.50, but the key support for gold remains the 100-day moving average, today lying at 1251.00. From a technical perspective, only a daily close below here would call into doubt the bullish chart picture.