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Momentum Remains Elusive

(Kitco News) - Gold continues to trade higher but is struggling to find momentum. Gold, up some 5% from the December lows, is trading inversely to the dollar. Yesterday’s dollar softness created a push to the $1,186 level, but overnight gains in the greenback has gold defending the $1,182 area this morning. Physical buying has picked up ahead of the Chinese New Year, but North American demand remains anemic. The markets will focus on president-elect Trump’s news conference tomorrow to glean more specifics on his stance on Russia, China, North Korea and of course his master plan to make the economy great again. Looking for gold to hold the $1,182 level to maintain recent strength, but a possible dip to the $1,177 area is possible. The upside is bordered by small resistance at the $1,187 level, with a possible intra-day target of $1,192, should selling pressure in the equity markets continue for another day.

By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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