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Gold Restrained In Higher Yield Environment

Commentaries & Views

(Kitco News) - Gold remains under pressure, ignoring some macroeconomic risks associated with the Italian budget crisis and the continued uncertainty surrounding Brexit. The increase in U.S. long-term rates remains the primary support leg for the dollar and this morning the U.S. 10-year yield flirted with 3.25%. Higher rates will become more problematic for the U.S. as debt-servicing levels will continue to rise and the expectation for slower growth and a more benign Fed is likely in play by early 2019. Holding insurance positions in gold remains appropriate but traders need to remain sensitive to technical levels. Support for gold shows a minor line at the $1,185 level, with more significant support near $1,180. First resistance level suggests $1,192 and then again at $1,197. Watch inflation data this morning for a possible break in the market.

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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