Opinion with Peter Hug
Gold Pauses But Pressure Remains
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold’s break to the downside was signaled on Friday when the euro failed to hold support at the 1.15 euro/dollar level. Traders were reluctant to sell into the weekend but the momentum accelerated on Monday. The issues with Turkey should have provided some safe-haven buying but the flows went into the dollar, as traders ignored gold’s historic role. The selling in gold has abated somewhat this morning as the dollar has given up some of its gains but the pressure remains to the downside in the commodity space as pressure continues to build in the emerging economies. Gold will need to recapture the $1,202 level to regain some bullish momentum. First support is seen at $1,192 and then again at $1,187.