Gold Lifts Against Macro Concerns
(Kitco News)- Gold continues to garner bids as macro fundamentals continueto favor the upside risk. Uncertainties surrounding global trade, the Italianbudget, Brexit and the upcoming mid-term elections in the U.S. have the globalfinancial markets on edge. Although the equity market has somewhat stabilized,we are still over 1,000 points away from last week's high. The market remainsnet short and further short covering isprobable. From a technical side, gold support sits near the $1,220 level andgold remains constructive above this level. Resistance appears at the $1,237area and a break here would signal a quick test of the $1,250 level. Silver remains the laggard and although up some 8% from the August lows is moreheavily influenced by the threat of a global slowdown. You may not want tochase silver but being short is not a good risk/reward trade.
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