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Gold Close To A Bearish Breakdown

Commentaries & Views

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(Kitco News) - The dollar continues to see inflows on the back of stronger economic data and yield differentials against the euro/yen. The 1.22 euro/dollar level, which has been a significant support level for the euro, broke yesterday and we suggested the break may usher in a drop for gold to the $1,307 level. Gold needs to hold this level on a close basis to avoid a test and possible break of the $1,297 area, which if it happens would create a technical bear pattern. Would expect continued volatility here with a trade probe back to the $1,312 level, which may be a false trigger. Would need to see gold above the $1,317 line and the euro lifting above the 1.22/dollar area before bullish sentiment returns.

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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