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Gold Nudges To $1,200 Print

Commentaries & Views

(Kitco News) - Gold touched our target of $1,200 that we mentioned on Monday morning. We do not yet believe that a fundamental change has occurred in the downtrend but assume that the bears are becoming increasingly nervous. The release of the Fed minutes this afternoon, from their the August policy meeting, will be scrutinized for signs that the Fed is becoming more cautious on their hawkish its outlook because of trade issues and the effects of the stronger dollar on emerging economies. The dollar has dropped almost 3% against the euro in the past week, which has been the main driver for higher gold prices. We caution that any negative news on the trade negotiations with China or a continued ambivalence from Fed Chair Powell when he speaks on Friday about the risks of much higher rates will turn psychology negative again on the metals complex. Technically, gold is beginning to look better but we are looking for a close above $1,207 to confirm these metrics. For now, traders may wish to stand aside and allow the market to prove its direction.

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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