Can Gold Hold Support?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Wednesday turned out to be one of the wildest days in stock-market history when equities were down 500 points in the premarket on news of trade wars and tariffs. By the time the market opened at 9:30 a.m. EDT, equities had found their bottoms and the rally was on, with the market closing up almost 300 points on the day.
At the height of the panic, gold had rallied to $1,346 before closing at $1,336. Once again, the metal weakened near resistance and now sits on the new support level of $1,330. The big question -- can gold hold support?
With both gold and silver at key support levels, the dollar holds the key. The suppression of the dollar by the Fed and central banks around the world has not had as much benefit for the metals as it should have. If the dollar index breaks out over 91, look for the metals to fail to hold support and move lower