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Gold Retraces Friday's Bounce

Commentaries & Views

(Kitco News) - Gold continues under pressure overnight after last week’s tepid bounce. Gold managed a meager $15 bounce on Friday but could not sustain any momentum into the close. Overnight the dollar continued to appreciate, which brought fresh selling into the commodity space. The technical charts look terrible for gold but a possible support zone exists around $1,207. Watching the euro/dollar for a quick entry point will be important. The euro is close to 1.15 to the dollar and we would expect some support at this level. If the euro breaks below the 1.15 figure, further selling in gold should be expected, with a test of the $1,202 line the first objective. Should gold recapture the $1,213 area, we would expect a drift higher to the $1,220 area.

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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