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Gold Looking Exhausted

Commentaries & Views

(Kitco News) - Gold continues to struggle against the backdrop of easing geopolitical tensions and the strength in the dollar. The European Central Bank announced last week that rates would remain unchanged, which initiated further capital flows into the dollar, as yield differentials widened between the U.S. and Europe. The euro has been very resilient at the 1.20 euro/dollar level and a break below this would be the next catalyst for lower gold prices. Technically gold is hovering around the 200-day moving average, with support at the $1,307 area. A break here suggests a test of $1,298. The upside technical level resides at $1,317 initially, but a break above the $1,332 area is required to bring in fresh buying.

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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