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Can Gold Hold Support?

Commentaries & Views

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

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.