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Is gold ready to break through resistance? Is gold ready to break through resistance? Is gold ready to break through resistance?

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.
XAU
Source: Bloomberg
The Fed is now seen as cutting four times by our freind at Nordea, @SvendsenAnders.
Fed forecast
On the geopolitical front, tensions are rising between the US and Iran.
Iran
CNBC reports that gold's sharp rally this month has come on expectations of a Fed rate cut.
Gold
Source: ThinkorSwim
Gold
Source: ThinkorSwim
Gold
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.

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