Opinion with Peter Hug
Has Gold Seen The 2018 Low? Maybe
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - For traders, gold has offered a nice range over the past week. Buying the $1,207 support line and taking profits in the high teens has worked three times in the past week. In the doldrums of summer, it at a minimum keeps you awake. Given that there has been no fundamental change in interest-rate differentials and no flare-up of geopolitical tensions, one would expect the market to be testing at a minimum the $1,200 line. The longer we can hold above the $1,207 area, the higher-percentage bet, is that we may have put in the low for 2018. Seasonally, looking at past charts, the second half of August generally marks a springboard for higher trajectories into the fall. The key remains the dollar, which is beginning to flat line. We continue to watch the 1.15 euro/dollar line. If we can stay above the number, we remain constructive on gold prices. Technically, support at $1,207; resistance at $1,222.