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Gold Consolidation Is Temporary

Commentaries & Views

(Kitco News) - Gold continues to consolidate, awaiting further signals on the direction of the dollar. Recent comments by BOJ and ECB officials on concerns around the strengthening of the yen and euro against the dollar have created a pause in the dollar weakness. Yesterday’s reversal in the Dow from an opening 200 plus point gain to a negative close is also creating speculation that the equity market may be due for a reversal. Government shut down worries and a growing deterioration in bi-partisan cooperation on DACA are suggesting that further economic reform, such as infrastructure spending, may become more difficult to achieve. Technically, the market remains positive, with support at $1,332, but the dollar’s movements are the key to short term direction. Watch the euro/dollar 1.22 line. A break below may create further weakness in the metals complex.

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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