Opinion with Peter Hug
Gold Softer As Dollar Bounces
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold remains under pressure as dollar buyers emerge. Last week, we suggested going flat near the 2016 double top at $1,365, with an expectation of a move to the $1,345 area. Recent jawboning by the President that the U.S. wants a stronger dollar and the reversal by Treasury Secretary Mnuchin, that he was not advocating a weaker dollar policy has encouraged dollar bears to cover. This week Fed Chair Janet Yellen convenes her last FOMC meeting and it is unlikely that any new policy announcements will be forthcoming. Technically gold remains constructive and re-entering the long side here, at $1342, with a tight stop at $1,337, looks interesting for traders that just need to be in the game. Should gold break below $1,337, the chart suggests downside to $1,322. Trading swings remains appropriate but we continue to believe that $1,365 is the level to be broken to ratchet this market higher.