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Gold Prices Stabilize After Late Day Sell-Off

Commentaries & Views

(Kitco News) - Gold prices have stabilized after a late day sell-off yesterday. The initial softness was prompted by a pop in the dollar, which was likely, some profit taking, and not intervention by the BOJ or ECB. A large commercial order for gold hit the tape after the European close, which drove gold below the $1,332 support line. The market had no issue absorbing the sale and gold stabilized around the $1,228 level, where it is currently consolidating. Republicans are calling for a vote to avoid a government shut-down and rhetoric from both sides today should keep gold from breaking lower. The dollar has given back some of yesterday’s bounce, with the euro once again above 1.22 euro/dollar and the yen is again approaching the 111 yen/dollar line. Looking for gold to regain the $1,332 level to maintain short term bullish momentum. The $1,222 area is critical support, with a break through here suggesting a re-test of the $1,305 area.

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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