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Does the New NAFTA Deal Affect Gold?

Commentaries & Views

After months of negotiations to create a new NAFTA agreement, the deal is done. The equity markets are soaring on the news along with the “loonie.” However, gold remains stuck in consolidation and shows no signs of breaking out either way.

For the last couple of days, gold has been under pressure but has not broken the $1,180 level, indicating that the bottoms are in. On the other hand, gold has failed at resistance and has not been able to take out the top end of the range.

With all the news out there, it’s obvious that gold is stuck in a trading range and the news is meaningless. We expect gold to follow silver, which started to break out to the upside last week. For now, the best trade is the one of patience until gold breaks out one way or the other.

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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