Opinion with Peter Hug
Gold Prices Stabilize After Late Day Sell-Off
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold prices have stabilized after a late day sell-off yesterday. The initial softness was prompted by a pop in the dollar, which was likely, some profit taking, and not intervention by the BOJ or ECB. A large commercial order for gold hit the tape after the European close, which drove gold below the $1,332 support line. The market had no issue absorbing the sale and gold stabilized around the $1,228 level, where it is currently consolidating. Republicans are calling for a vote to avoid a government shut-down and rhetoric from both sides today should keep gold from breaking lower. The dollar has given back some of yesterday’s bounce, with the euro once again above 1.22 euro/dollar and the yen is again approaching the 111 yen/dollar line. Looking for gold to regain the $1,332 level to maintain short term bullish momentum. The $1,222 area is critical support, with a break through here suggesting a re-test of the $1,305 area.