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Phoenix's Grady: Gold Near 50% Fib Retracement Level

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A key for gold will be whether the metal can stay above a 50% Fibonacci level, says Kevin Grady, president of Phoenix Futures and Options LLC. The 50% retracement of the July-December sell-off comes in at $1,257.30 an ounce for Comex April gold. “A settlement above that should attract some new buying,” Grady says. As of 10:10 a.m. EST, April gold was up $4.80 to $1,256.20 an ounce. The metal peaked at $1,261.20, its strongest level since Nov. 11.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Gold Traders Eyeing 200-Day Moving Average

Friday February 24, 2016 10:21

Gold’s recent rally has left traders watching to see if the metal can break above the 200-day moving average. This will be a key technical-chart level, says Charles Nedoss, senior market strategist with LaSalle Futures Group. For spot gold, this comes in around $1,261. “Exceeding this threshold could spark technical follow-up buying and further strengthen the price rise,” Commerzbank says. The 200-day for Comex April gold is around $1,271.50 an ounce.  As of 10:06 a.m. EST, spot gold was up $6.10 for the day to $1,255.40 an ounce, while the April futures were up $4.90 to $1,256.30.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Nichols: Bullish As Gold Rallies In Face Of Expected Fed Rate Hikes

Friday February 24, 2016 10:21

Gold has a bullish posture considering the metal has been able to rise despite a bearish factor -- expectations for higher U.S. interest rates this year, says Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic consultant for Rosland Capital. Hedge funds and institutional speculators increased their already net-long gold position Thursday, he says. ”The thinking is, ‘If it isn’t going down despite expectations of a rate increase by the Fed and a stronger U.S. dollar, then it must go up!’” Nichols says. “In recent weeks, with gold trading in a narrow range and good technical support apparent to all, perceptions of momentum have also shifted and today traders just didn’t want to lose out — or bet against —  a rising market. Additionally, there has also been a positive shift in inflation and inflation expectations offsetting the expected rise in interest rates. In other words, real ‘inflation-adjusted’ interest rates are falling, and this is -- and will continue to be— a big plus for the yellow metal.”

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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