Opinion with Peter Hug
Gold Remains Under Pressure As Dollar Continues Higher
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold begins the week on a defensive note as the dollar continues well bid. It remains a case where comparisons show U.S. growth continues to outperform the E.U. and Japan. The euro could not recover the 1.20 euro/dollar level last week and the technical picture suggests further “short-term” dollar strength. Repatriation of corporate overseas dollar holdings has also added to dollar strength momentum. We consider current dollar strength temporary, but until you see technical evidence of a reversal, trying to catch the dollar top may be premature. Gold will need to hold our $1,302 support line to avoid a potential test of the $1,287 area. The upside resistance band continues at $1,322 -$1,325.