After gold hit multi-year highs, it is beginning to moderate a bit. I expect it to remain elevated:
Technically, gold downside may remain limited with minor trend and price support at $1,205 and dynamic support at the 72-4H nearing $1,198. Deeper support levels are seen at $1,190 and $1,177.
has tapered off since the Feb. 11 high, but positive bars still remain on top. Near-term resistance can be seen at $1,214, while stronger resistance is $1,220. If gold can retake these levels, price action would challenge the recent downtrend from the recent high. At that point, bulls can look toward $1,240.
What has been beneficial is that gold has been able to work off its highly overbought level while still remaining about key support.
This Friday, traders are anticipating the US preliminary GDP print. Consensus is at a nauseating .4 percent, following Q4 .7 percent that is likely to be revised lower. Even if the prelim data meets consensus, it would be over two percent lower than the Atlanta Fed's GDPNow model.
Not only is it ironic that the Federal Reserve's first rate high in seven years was in a corporate profits recession and sub-one percent growth, but it also could have been done going into a recession.
Way to go, Janet!
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