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Gold Bounces From Support

Commentaries & Views

On Tuesday gold took a turn down with sellers in control until the $1,220 level was reached. The $1,220 area was a key level to hold and although gold traded slightly below that level, it was in the margin of error in charting.

February gold made lows just under $1,218 and attracted buyers, closing just above the $1,220 level. Today’s range at the time of this writing has been $1,219-$1,221, which is solid support. If gold is going to rally, this is a must-hold level, which we think it will.

Fed Chair Powell speaks today, which could influence the price of gold; however, we don’t think that will be the case. Many are worried about the price of the dollar versus gold, but that shouldn’t be a concern either. The key is the price action and the $1,215-$1,220 level. As long as this holds, gold should be able to rally from here.

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.