Gold Bounces From Support
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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. Todayâ€™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 donâ€™t think that will be the case. Many are worried about the price of the dollar versus gold, but that shouldnâ€™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.