Opinion with Peter Hug
Gold Close To A Bearish Breakdown
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Featuring views and opinions written by market professionals, not staff journalists.
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(Kitco News) - The dollar continues to see inflows on the back of stronger economic data and yield differentials against the euro/yen. The 1.22 euro/dollar level, which has been a significant support level for the euro, broke yesterday and we suggested the break may usher in a drop for gold to the $1,307 level. Gold needs to hold this level on a close basis to avoid a test and possible break of the $1,297 area, which if it happens would create a technical bear pattern. Would expect continued volatility here with a trade probe back to the $1,312 level, which may be a false trigger. Would need to see gold above the $1,317 line and the euro lifting above the 1.22/dollar area before bullish sentiment returns.