Opinion with Peter Hug
Gold Prices Continue In Tight Range
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold continues to move in a narrow range and traders continue to look for a break above the $1,322 level on a close basis. The dollar’s recent strength appears to be mitigating, which may be the catalyst to push gold through this resistance area, but a clear break above the 1.20 euro/dollar trade will likely be needed. On the bearish side, tensions with China over trade may be softening, which should continue to push capital into the equity space. Another positive development is the return of the retail buyer to the physical space. To be more specific, retail selling of physical metal has slowed considerably and investors are beginning to buy physical investment bars and coins, especially where dealers are offering heavy discounts, One example is the Krugerrand which can be picked up on the retail market for as little as a $10 premium to spot.