Opinion with Peter Hug
Gold Looking Exhausted
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(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.