Gold Feels Very Unsettled
(Kitco News)- Gold rejected the $1,200 level Wednesday and rejected the $1,180-ish area overnight. The market seems unsettledand we suggest the risk rests with the bears. The bounce overnight was theresult of some profit taking and value buying ahead of Fed Chairman Powell’sspeech to central bankers later today. The market’sconflict comes from the U.S.-China trade war and the Turkish currency crisis onone hand, which has created flows into the dollar and has been gold negative, and the view that the President’s growingpolitical issues may derail the equity market. There is also growingdisagreement within the Fed on much how much more tightening is needed. FedChair Powell is the primary hawk and today’s speech will be dissected for anysigns that the he is concerned about the effects on U.S. growth from any of thebigger macro issues. The “book” on the spec side remains heavily short and theweekend lies ahead. Any movement away from Powell’s perceived hawkish positionmay create a serious bounce for gold. If he stays the course, I would expectselling but in a muted fashion into the weekend, with a downside level of$1,185 - $1,187.
Contributing tokitco.com
Follow @KitcoNewsNOW
newsfeedback@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.