Opinion with Peter Hug
Gold Price Remains Pressured By Stronger Dollar
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold and silver, after a few attempts, were both unable to break up through their respective resistance levels of $1,322 and $17.22. The break-down of the euro/dollar trade through the 1.20 level initiated some profit taking in both metals yesterday. The 30-year U.S. bond broke above the 2% level yesterday, adding further pressure to the metals complex. The metals have remained resilient in the face of a soaring equity market and some calming of tensions with North Korea, and a significant sell-off is unlikely. Gold may trade down to the $1,305 level today and silver may fade as low as $16.87, should the $17 level give way. We continue to see the resistance levels noted above as the hurdle to overcome for continued higher momentum.