Gold Softer As Dollar Bounces
(Kitco News) - Gold remains under pressure as dollar buyers emerge. Lastweek, we suggested going flat near the 2016 double top at $1,365, with an expectation of a move to the $1,345 area.Recent jawboning by the President that the U.S. wants a stronger dollar and thereversal by Treasury Secretary Mnuchin, that he was not advocating a weakerdollar policy has encouraged dollar bears to cover. This week Fed Chair JanetYellen convenes her last FOMC meeting and it is unlikely that any new policyannouncements will be forthcoming. Technically gold remains constructive andre-entering the long side here, at $1342, with a tight stop at $1,337, looks interesting for traders that justneed to be in the game. Should gold break below $1,337, the chart suggestsdownside to $1,322. Trading swings remains appropriate but we continue tobelieve that $1,365 is the level to be broken to ratchet this market higher.
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