COMMODITIES 5 minutes to read

Is gold ready to break through resistance?

Steen Jakobsen

Chief Economist & CIO

Summary:  Is gold ready to take out key resistance at $1350-60/oz?

Action: Buy XAUUSD at $1,347.00/oz with a stop set to a daily close of $1,318/oz.

Why: The $1,350-60/oz level is a major technical resiatance point; Saxo Head of Commodity Strategy Ole Hansen sees the potential for $100 in upside if this is broken.

Background: The backdrop to gold price movements consists of the China-US trade war, increasing tensions around Iran, Federal Reserve easing, extensive gold buying by central banks, and technical factors.
Source: Bloomberg
The Fed is now seen as cutting four times by our freind at Nordea, @SvendsenAnders.
On the geopolitical front, tensions are rising between the US and Iran.
CNBC reports that gold's sharp rally this month has come on expectations of a Fed rate cut.
Source: ThinkorSwim
Source: ThinkorSwim
Source: ThinkorSwim
Finally, Kitco is reporting that the People's Bank of China expanded its gold purchasing in May while Bloomberg points out that this represents six straight months of expansion.

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (