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Gold Washes Through Support

Commentaries & Views

(Kitco News) - Gold struggled to hold the $1,262-65 major support band yesterday, but overnight the stronger dollar proved enough to snap the two-month level. Selling accelerated on the break as technical traders jumped on board. We are under a week away from the Fed meeting in which a 0.25-point increase is baked into the market. The question is whether this weakness in gold is an image of the December 2015 and 2016 charts, where the metals began significant rallies after the rate-increase announcement, or if we are in a different paradigm this time around. The $1,250 level is the next solid support line, with a break here suggesting a move as low as $1,237 initially. The gold price needs to recapture $1,262 on a close basis to stop the bleed.

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 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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