Gold Weaker But Iran Announcement May Hold Off The Bears
(Kitco News)- Gold bounced off the $1,307 support level but the marketsentiment remains on the weak side. The dollar remains bid but traders may beunlikely to be aggressively short gold ahead of President Trump's announcementat 2 p.m. EDT on whether the U.S. will stayin the Iran nuclear deal. The higher oil price is also suggesting thatinflation may be creeping back into the economy, which may induce the Fed to bemore hawkish at their June meeting. All what-ifs. As long as the dollar remainsstable to higher, it will be difficult for gold to find momentum. Expectvolatility into the 2 o'clock announcement. I know silver is boring but at thecurrent ratio selling gold against a long in silver may be prudent for traderslooking to enter silver with protection. Would expect the ratio to trade closerto 72:1 over the medium term.
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