Gold Liquidation Accelerates

(Kitco News)- Gold touched the next major support line of $1,220overnight. Weaker oil prices suggesting a softer inflation impact and astronger dollar on yield differentials have both contributed to the sellingpressure. Fed Chair Powell reinforced the Fed's guidance of two additional ratehikes this year at yesterday's congressional testimony, which provokedliquidation in the commodity space in general. We think the $1,220 level shouldcreate a pause in the selling, but the fundamentals remain bearish. A breakhere suggests a medium target of $1,187 and with options expiries this week,traders may also try and put pressure on the $1,200 strikes.

By Peter Hug

Contributing tokitco.com

Follow @KitcoNewsNOWnewsfeedback@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.

Big Gold has another strong quarter, but some signs growth cooling

Gold stocks nearly regain highs on rising metal price

Gold stocks down as risk on move continues

Mixed outlook for resources on new Canadian government

Gold's Bull Market Pullbacks