Opinion with Peter Hug
Gold Resting Or Overextended?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold moved to our short-term target of $1,322 overnight but a slightly stronger tone to the dollar brought fresh selling into the metals complex. Gold appears overextended in the short term and is trying to consolidate but requires a break above the $1,322 level to generate further momentum. There is support at the $1,311 spot level but a break through here would bring a test of the $1,302 area. Silver shows support at $17.02 and requires a close above the $17.22 area for further strength. As was mentioned yesterday, the metals are closely tied to dollar movements. Continue to watch the 1.20 euro/dollar level for indications of a reversal in recent dollar weakness.