Opinion with Peter Hug
Gold Consolidation Is Temporary
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold continues to consolidate, awaiting further signals on the direction of the dollar. Recent comments by BOJ and ECB officials on concerns around the strengthening of the yen and euro against the dollar have created a pause in the dollar weakness. Yesterday’s reversal in the Dow from an opening 200 plus point gain to a negative close is also creating speculation that the equity market may be due for a reversal. Government shut down worries and a growing deterioration in bi-partisan cooperation on DACA are suggesting that further economic reform, such as infrastructure spending, may become more difficult to achieve. Technically, the market remains positive, with support at $1,332, but the dollar’s movements are the key to short term direction. Watch the euro/dollar 1.22 line. A break below may create further weakness in the metals complex.