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Dollar Breaking Out; Gold Fails to Hold Support

Commentaries & Views

As the U.S. dollar is breaking out to the upside, gold failed to hold the higher support level established a couple of weeks ago at $1,330. The dollar breakout should add pressure to dollar-denominated commodities, especially the metals.

Gold has struggled for months and the new-found strength in the dollar is not going to be helpful for the price of gold. The current price action in gold indicates that the metal could break out to the downside and go below $1,300.

Investors in gold should not worry about the day-to-day movement; they should use weakness to accumulate more. Traders should watch the levels and be willing to trade on either side based on the market footprint, not the news or opinions but on technical analysis.

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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