Dollar Breaking Out; Gold Fails to Hold Support

As the U.S. dollar is breakingout to the upside, gold failed to hold the higher support level established acouple of weeks ago at $1,330. The dollar breakout should add pressure todollar-denominated commodities, especially the metals.

Gold has struggled for months andthe new-found strength in the dollar is not going to be helpful for the priceof gold. The current price action in gold indicates that the metal could break outto the downside and go below $1,300.

Investors in gold should notworry about the day-to-day movement; they should use weakness to accumulatemore. Traders should watch the levels and be willing to trade on either sidebased on the market footprint, not the news or opinions but on technicalanalysis.

By Todd 'Bubba' Horwitz

Contributing tokitco.com

Follow @Bubba_TradingBubba@bubbatrading.com www.bubbatrading.com/ 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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