Big Test For Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The U.S. dollar index is breaking out to the upside and if it gets through 91, then 95 would be the next target. Typically, a strong dollar trumps commodity prices. With gold at $1,330, which is a support level, there is danger that this level will fail.
Although there is fear in the equity markets, gold has struggled and failed to break out to the upside. Failure to hold above $1,365 brings $1,300 back into play. Add in the strength of the dollar and failure at $1,330 could be ugly.
The 10-year notes are pushing 3% and the dollar is spiking, leaving gold in danger of breaking down. With silver coming back to support after breaking out to the upside, gold better hold $1,330 or the weak hands will start selling.