Is gold ready to break through resistance?

Commodities 5 minutes to read

Steen Jakobsen

Chief Investment Officer

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.

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.

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.

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Is gold ready to break through resistance?

Steen Jakobsen

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Quarterly Outlook Q2 2022

Quarterly Outlook Q2 2022: The End Game has arrived

The End Game has arrived

Energy crisis could turn energy stocks into secular winner

The great EUR recovery and the difficulty of trading it

Tight commodity markets – turbocharged by war and sanctions

Between a rock and a hard place

The Great Erosion

Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recession

Cybersecurity – the rush to catch up with reality

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