Gold May Again Be Issuing A WarningTuesday April 12, 2016 08:28
(Kitco News) - There is a sense of something coming around the corner that has the gold market on alert. Just looking at equities and the dollar, the upside push in gold appears unwarranted. Gold has been sensitive to the US$/yen rate, with yen strength translating into stronger gold demand. Japan’s finance minister has warned that intervention is likely should the yen appreciate further. The concept of negative rates for Japan was to drive the Yen lower to stimulate exports, but the yen has strengthened 15% from its recent low against the dollar. Greece and the IMF are exchanging barbs on Greece’s upcoming debt negotiations and Britain with its planned June vote on the EU is also catching news bites. Momentum remains the key and a close above the $1,250 level remains a requirement for further short term upside. Would suggest support lies around the $1,238 level, with a break of $1,250 opening up $1,258 and then a $1,265 target.
By Peter Hug, Kitco Metals Global Trading Director; firstname.lastname@example.org