Spot gold remains above chart support that starts around $1,220 an ounce, says MKS (Switzerland) S.A. 'Trade concerns between the U.S. and China remain elevated and the ongoing U.S.-Saudi tensions are likely to continue to underpin a bid tone for bullion over the near term,' MKS says.
'Supportive price action around $1,210-$1,220 should restrict declines amid current global political uncertainty, while a test through $1,230-$1,235 will likely squeeze further shorts out of the market and see gold toward $1,250.' Just before 8:30 a.m. EDT, spot gold was down $3.40 to $1,223.10 an ounce.
Meanwhile, Todd 'Bubba' Horwitz from Kitco said the metals continue to pick up strength and look like they are getting ready to blast off. The key here is not to be too impatient and force the trade too early. There will be plenty of time to enter, but the key levels right now are $1,220-$1,240.
After breaking out to the upside a couple of weeks ago, gold has found new support within its new consolidation range. The action has been bullish and indicates another breakout to the upside is coming.
There is no way to know when the breakout will appear; however, we can look for certain characteristics to be prepared. If you are aggressive, you can look at $1,225 as an entry, using below $1,220 as an exit. The pattern looks good, and we expect higher prices, Bubba said.