Opinion with Peter Hug
Gold Market’s Critical Levels To Watch
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Gold has been a somewhat difficult market to trade over the past two weeks, but our strategy of selling into strength around the $1,422 area continues to work. We remain constructive the gold market but watch the $1,397 area for a possible breakdown. It appears the Fed is now cornered and will likely drop rates in two weeks, but I am skeptical that they will go more than 25 bips. I’ll comment closer to the meeting but 25 bips is in the market and we may get a sell-the-news event. The easing Fed, geo-political issues continuing with Iran, an equity market looking very frothy, Trump bashing the strong dollar all suggest gold’s trajectory remains higher, but we want this market to post a close above the $1,422-24 level to confirm the next leg higher. Silver has been a pain to watch but its day to shine is coming.