Opinion with Peter Hug
Gold Weaker But Iran Announcement May Hold Off The Bears
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold bounced off the $1,307 support level but the market sentiment remains on the weak side. The dollar remains bid but traders may be unlikely to be aggressively short gold ahead of President Trump’s announcement at 2 p.m. EDT on whether the U.S. will stay in the Iran nuclear deal. The higher oil price is also suggesting that inflation may be creeping back into the economy, which may induce the Fed to be more hawkish at their June meeting. All what-ifs. As long as the dollar remains stable to higher, it will be difficult for gold to find momentum. Expect volatility into the 2 o’clock announcement. I know silver is boring but at the current ratio selling gold against a long in silver may be prudent for traders looking to enter silver with protection. Would expect the ratio to trade closer to 72:1 over the medium term.