Opinion with Peter Hug
Gold Prices Remain Constructive
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Despite the stronger dollar overnight gold continues to remain resilient. The news overnight of expected slower European growth this year and next, which hurt the euro in dollar terms, created some strength in the dollar. The risks ahead with Brexit, the Italian election and the possibility of another U.S. government shutdown continue to create a bid for the yellow metal. The Asian markets will be back in full swing next week, which may also create renewed demand for gold. From a technical level, we continue to watch a break of the support line, initially at $1,307 and again at $1,302 on a close basis for signs of a market reversal. The resistance area of $1,325 is the pivot area for a break to the $1,337 line. We remain constructive into next week, after the consolidation witnessed throughout the current week.