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Gold Market’s Critical Levels To Watch

Commentaries & Views

(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.

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.

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