Gold Prices: Overall Short-Term Picture Looks Lethargic
(Kitco News)- Gold continues to see selling pressure as both theshort-term fundamentals and the technical picture have deteriorated. Gold'sfailure to break above the $1,337 level early last week and the subsequentbreak of $1,322 overnight suggests the technical picture may have turnedbearish. The FOMC meeting next week is expected to bring a 25-basis-pointincrease in rates, especially after Friday's stellar job report.. Possibletalks between North Korea and the U.S. have reduced geopolitical tensions.President Trump's original aggressive stance on steel and aluminum imports hasbeen watered down substantially, with many countries receiving an exemption onthe proposed tariffs.
North American retail demand remains elusive, withsecondary investment product continuing to stream into dealer inventories.Taken as a whole, there is no urgency to engage on the long side and waitingfor a break above the $1,337 level for investors looking to add to positionsmay be appropriate. For traders, gold should be bound between $1,307 and$1,322.
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