The Uncertainty Factor Continues to Grow

Gold prices moved up modestly today, gaining 2/10 of a percent ($2.50), and as of 3:30 Eastern Standard Time, gold futures are trading at $1235 an ounce. This is based on the most active April 2017 Comex Futures contract. Gold pricing continues to hold steady after reaching a three-month high in yesterday’s trading activity.

Today’s modest move comes in tandem with a stronger US dollar, currently trading .36 % higher on the day, with the Dollar Index at 100.27. Both gold and the US dollar are considered safe-haven assets and as such, are reacting to the geopolitical uncertainty, which continues to grow out of concern from recent actions taken by President Donald Trump’s administration.

Shake Rattle and Roll

President Trump continues to shake and rattle the status quo as he rolls out his executive orders. At the forefront is his recent Executive Order on immigration. As reported today in MarketWatch, according to Chintan Karnani, chief market analyst at Insignia Consultants, the outcome and decision by the Federal Courts on President Trump’s Immigration Executive Order, "will have a big impact on gold and U.S. dollar. If the immigration ban is opposed by the federal judges, investors may believe that Trump's policies may be challenged in U.S. courts. Demand for safe-haven assets, such as gold, could ‘zoom.’” He went on to say, “But if the ban clears, gold prices may crash toward $1,200.”

Fibonacci Based Support and Resistance

Based upon our current technical studies, we show current resistance in gold at $1242 and then at $1281 per ounce. We also see initial price support at $1220 per ounce, with major support at $1183. If gold prices continue to remain firm and trade higher, our target of $1251 remains intact.

Wishing you as always, good trading,