Gold investors need to show some patience

New York (Nov 25)  Fundamentals: With an upbeat U.S-China trade narrative that now includes some substance coupled with rising odds of a Fed hike next month, Gold continues to trickle lower. Do we think intellectual property is now fully included in trade negotiations? No. Do we think the Fed has any chance of hiking next month? No. This leads into our narrative of patience for buying Gold during this seasonally weaker time of year and as we prepare for a seasonally bullish time of year. Bill Baruch joined Bloomberg on Friday to discuss some of the ways we are playing Gold.

Technicals: Despite early gyrations higher on Friday off first key support, price action was lackluster at best through the second half of the day as equity markets finished on a strong note. Gold is testing major three-star support today at 1450-1454, as we remain longer-term bullish and near-term cautious we want to see how the metal responds on this most recent dip. Our momentum indicator aligns with settlement to create first key resistance.

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