Opinion with Peter Hug
Gold Jumps But Further Upside Needed To Confirm Technical Breakout
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold prices bounced this morning on weak February employment data. The weak jobs number may be signaling an acceleration of a slowing U.S. economy. The 10 year U.S. bond yield continues to weaken and the dollar is showing signs of reversing its recent uptrend. We are sticking with our long gold position initiated on Monday at $1,282.50 but have raised our exit stop to $1,292 on a close basis. Technically, we need to see a gold close above the $1,297 area but ideally would like to see the $1,302 level taken out to confirm the next leg higher. Global economies are slowing but the U.S. is still the best game in town and a continued weakening of the dollar may still be some time down the road.