Opinion with Peter Hug
Gold Price Fighting Stronger Dollar
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold continues to weaken in the face of a stronger US$. Dollar strength, especially against the yen, remains the main headwind for gold in the short term. Prime Minister Shinzo Abe’s election victory over the weekend reinforced the continuation of Japan’s accommodation on monetary policy. The key to short-term dollar strength will be the progress made on tax cuts. Any hiccup in this area will hurt the equity market and reverse dollar momentum. The path of least resistance for gold remains lower, with initial support at $1,272 and then again at $1,265. Buying should re-emerge if gold can break up through $1,279.