Opinion with Peter Hug
Gold's Momentum Wanes Again
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold failed to close above its 200-day moving average on Tuesday and selling continued overnight. The initial surge in the overnight market on Monday, in Asia was likely the result of a thin market with Hong Kong closed for a holiday. This is the third time that gold has failed at the critical resistance level and with the turn in dollar strength, the path of least resistance suggests a weaker tone. Gold should find some support ahead of the China meeting and the release of Fed minute meetings later today. A reversal in the equity markets should bring renewed strength to the dollar, which again may prove problematic for gold. A break of the $1,257 level on a close basis remains key to higher short-term prices. The $1,245 area should provide first line of support.