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

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