Opinion with Peter Hug
Gold Price Trying To Consolidate
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold remains mired in a tight range as the market awaits fresh input. This week's employment report and the Fed meeting next week will likely create the catalyst for a break into new levels. Gold remains resilient in the face of a stable dollar and some signs of success with the administration's fiscal policies. The shadow of the Mueller investigation and tensions with North Korea are acting as counter measures against the soaring equity markets and prospects of Fed tightening. The larger range for gold remains $1,265 - $1,297 but a micro band has developed at $1,272 - $1,279. Silver is approaching 79:1 against gold on the ratio and subsequent valuations at this level have developed into a silver rally. We suggest it may be safer to play the ratio at 79:1, with an exit target of 75:1.