Opinion with Peter Hug
Gold Liquidation Accelerates
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold touched the next major support line of $1,220 overnight. Weaker oil prices suggesting a softer inflation impact and a stronger dollar on yield differentials have both contributed to the selling pressure. Fed Chair Powell reinforced the Fedâ€™s guidance of two additional rate hikes this year at yesterdayâ€™s congressional testimony, which provoked liquidation in the commodity space in general. We think the $1,220 level should create a pause in the selling, but the fundamentals remain bearish. A break here suggests a medium target of $1,187 and with options expiries this week, traders may also try and put pressure on the $1,200 strikes.