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Gold Weaker But Iran Announcement May Hold Off The Bears

Commentaries & Views

(Kitco News) - Gold bounced off the $1,307 support level but the market sentiment remains on the weak side. The dollar remains bid but traders may be unlikely to be aggressively short gold ahead of President Trump’s announcement at 2 p.m. EDT on whether the U.S. will stay in the Iran nuclear deal. The higher oil price is also suggesting that inflation may be creeping back into the economy, which may induce the Fed to be more hawkish at their June meeting. All what-ifs. As long as the dollar remains stable to higher, it will be difficult for gold to find momentum. Expect volatility into the 2 o’clock announcement. I know silver is boring but at the current ratio selling gold against a long in silver may be prudent for traders looking to enter silver with protection. Would expect the ratio to trade closer to 72:1 over the medium term.

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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