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Gold Lifts Against Macro Concerns

Commentaries & Views

(Kitco News) - Gold continues to garner bids as macro fundamentals continue to favor the upside risk. Uncertainties surrounding global trade, the Italian budget, Brexit and the upcoming mid-term elections in the U.S. have the global financial markets on edge. Although the equity market has somewhat stabilized, we are still over 1,000 points away from last week’s high. The market remains net short and further short covering is probable. From a technical side, gold support sits near the $1,220 level and gold remains constructive above this level. Resistance appears at the $1,237 area and a break here would signal a quick test of the $1,250 level. Silver remains the laggard and although up some 8% from the August lows is more heavily influenced by the threat of a global slowdown. You may not want to chase silver but being short is not a good risk/reward trade.

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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