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Gold Liquidation Accelerates

Commentaries & Views

(Kitco News) - Gold touched the next major support line of $1,220 overnight. Weaker oil prices suggesting a softer inflation impact and a stronger dollar on yield differentials have both contributed to the selling pressure. Fed Chair Powell reinforced the Fed’s guidance of two additional rate hikes this year at yesterday’s congressional testimony, which provoked liquidation in the commodity space in general. We think the $1,220 level should create a pause in the selling, but the fundamentals remain bearish. A break here suggests a medium target of $1,187 and with options expiries this week, traders may also try and put pressure on the $1,200 strikes.

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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