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' HorwitzContributing tokitco.com
Follow @Bubba_Trading