U.S. Gold Fails To Breakout
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Tuesday and Wednesday gold failed to breakout and is now under selling pressure, holding onto the $1,330 level by its fingernails. With interest rates rising, although the FED is doing everything it can to stop that, the offset of the weaker dollar is putting weight on gold, stalling the drive higher. Coupled with some profit taking and you see selling pressure on the metals.
Factors that will push gold lower in the near future are higher interest rates, profit taking and a stronger dollar, which appears to have put in lows. The dollar should start to rally, cryptocurrencies which have been under heavy selling pressure are going to bounce and the never-ending stock market rally.
The rally in gold was very powerful and a little profit taking and selling pressure is the best for gold longs term bulls. A failure to hold $1,330 brings gold to the next level of support, which is $1,310 and lower. We expect to see lower prices for now with a possible test of the recent lows. We remain long term bullish, but bearish in the short term.