Gold Consolidation Is Temporary
(Kitco News) - Gold continues to consolidate,awaiting further signals on the direction of the dollar. Recent comments by BOJand ECB officials on concerns around the strengthening of the yen and euro againstthe dollar have created a pause in the dollar weakness. Yesterday's reversal inthe Dow from an opening 200 plus point gain to a negative close is alsocreating speculation that the equity market may be due for a reversal.Government shut down worries and a growing deterioration in bi-partisancooperation on DACA are suggesting that further economic reform, such asinfrastructure spending, may become more difficult to achieve. Technically, themarket remains positive, with support at $1,332, but the dollar's movements arethe key to short term direction. Watch the euro/dollar 1.22 line. A break belowmay create further weakness in the metals complex.
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