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Gold Prices Breaking Out

Commentaries & Views

As we wrote yesterday, gold has been in this tight range and all signs were pointing to a breakout to the upside. This morning, it is tacking on to yesterday’s gains. The key level is now $1,312; a close above would bring us to our next target of $1,330.

Fed officials reported on Wednesday and did the usual stick their heads in the sand, hiking rates 0.25 percentage point and indicating two more hikes this year. The ECB is next and reports this morning; the announcement should also help buoy the prices of gold and silver.

It appears that all of the bad news for the metals has been priced into the market and the bottoms are in. We would expect a solid rally from these levels and a run to the next resistance levels. The probabilities favor a continuation of the rally that began on May 21 after the blow-off bottoms.

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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