Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG)

[1~Eye~Jack!!]

~ JNUG = Short-Term Outlook: Analysts Eyeing $1,265-$1,300..Gold~Levels!!

Anna Golubova
Tuesday March 21, 2017 20:17
http://www.kitco.com/news/2017-03-21/Short-Term-Outlook-Analysts-Eyeing-1-265-1-300-Gold-Levels.html

Analysts Eyeing $1,265-$1,300 Gold LevelsAs gold neared three-week highs on Tuesday, analysts were projecting that the yellow-metal could shortly beat its February high of $1,264.90.

“We are already trading between $1,220-$1,250 levels with an on-going attempt to break through that resistance. There is a strong possibility of hitting the recent high of $1,264 in the not so distance future,” said Bart Melek, head of global commodity strategy at TD Securities in an interview with Kitco News.

The main reason for the rally has been speculation over U.S. President Donald Tump’s ability to bring some of his key campaign promises to fruition, Melek noted.

“It is looking less likely that Trump will deliver simulative fiscal agenda in a timely manner. And the healthcare bill looks to be in trouble. This could mean no tax cuts in the foreseeable future,” said Melek. “With the FOMC narrative continuing to stress three hikes in 2017 and 3+ next year, there could be reason to buy gold again.”

On Tuesday, April Comex gold hit a high of $1,247.7 per ounce, boosted by a major sell-off in the U.S. stock market and a drastically lower U.S. dollar index.

“As you can see by today's dramatic sell-off in U.S. equities, there are some real concerns as to whether or not this new administration will be able to make good on promises regarding lower taxes regulatory reform and major infrastructure projects. The reason for this concern is the current stalemate in terms of the affordable care act and the administration's attempt to replace and repeal,” executive producer of ‘The Gold Forecast’, Gary Wagner, told Kitco News.

With all of this in mind, markets started to price in a dovish Federal Reserve approach, with gold prices not leaving the upward correction trajectory ever since last week’s announcement.

“The rally in gold was based upon the fact that the tone of the Fed is still accommodating in terms of their monetary policy. There was some real concern that the Fed would adopt a much more aggressive stance because at that time the economy was doing so well,” said Wagner.

The key price targets Wagner is watching are support levels at $1,221 and $1,235, as well as, major resistance at $1,265.

Meanwhile, some traders are even more optimistic, with expectations running as high as $1,300 for gold. “It depends how the Fed plays it out... But, I do think gold can make this systematic move to the upside and I’d say $1,300 in the next 30 days is a realistic target,” senior market strategist over at Chicago-based RJO Futures, Philip Streible, told Kitco News in a video interview.

By Anna Golubova
For Kitco News