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Gold's Momentum Wanes Again

Commentaries & Views

(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.

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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