Opinion with Peter Hug
Quarter-End Squaring Brings In Dollar Weakness And Reprieve For Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold regained the $1,250 level overnight primarily as a result of a weaker dollar. We remain unconvinced that the dollar rebound is based on any fundamental changes, in the short term. The trade has enjoyed a stellar performance in the strengthening greenback but the move overnight suggests traders may have taken some profits on the last trading day of the quarter to lock in good optics on their portfolio statements. We will await the new week to determine whether the dollar has posted an interim top. We expect continued volatility today and into next week’s holiday trade. There is good interest at the $1,247 level for gold and yesterday’s $15 big figure print brought silver buyers back into the market. The volumes yesterday suggested retail is locked and loaded, but still chasing lower entry points.