Opinion with Peter Hug
Gold Nudges To $1,200 Print
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold touched our target of $1,200 that we mentioned on Monday morning. We do not yet believe that a fundamental change has occurred in the downtrend but assume that the bears are becoming increasingly nervous. The release of the Fed minutes this afternoon, from their the August policy meeting, will be scrutinized for signs that the Fed is becoming more cautious on their hawkish its outlook because of trade issues and the effects of the stronger dollar on emerging economies. The dollar has dropped almost 3% against the euro in the past week, which has been the main driver for higher gold prices. We caution that any negative news on the trade negotiations with China or a continued ambivalence from Fed Chair Powell when he speaks on Friday about the risks of much higher rates will turn psychology negative again on the metals complex. Technically, gold is beginning to look better but we are looking for a close above $1,207 to confirm these metrics. For now, traders may wish to stand aside and allow the market to prove its direction.