Opinion with Peter Hug
Gold Breaks Out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold broke above the $1,322 level as the dollar came under further pressure overnight. With growth in Europe accelerating, the markets are expecting the ECB to begin a more aggressive tightening cycle. Physical demand in Asia has also picked up ahead of the Chinese Lunar New Year. The recent move in gold has been almost entirely correlated to dollar weakness, which continues to remain the main focus. Retail demand in North America, for the time being, remains anemic but a break higher may encourage new participation. The $1,322 area now becomes support, with the next resistance level for gold around the $1,338 area. A break through here suggests a possible move to the $1,347.