Gold Nudges To$1,200 Print
(Kitco News)- Gold touched our target of $1,200 that we mentioned on Mondaymorning. We do not yet believe that a fundamental change has occurred in thedowntrend but assume that the bears are becoming increasingly nervous. Therelease of the Fed minutes this afternoon, from their theAugust policy meeting, will bescrutinized for signs that the Fed is becoming more cautious on their hawkish its outlook because of trade issues and theeffects of the stronger dollar on emerging economies. The dollar has droppedalmost 3% against the euro in the past week, which has been the main driver forhigher gold prices. We caution that any negative news on the trade negotiationswith China or a continued ambivalence from Fed Chair Powell when he speaks onFriday about the risks of much higher rates will turn psychology negative againon the metals complex. Technically, gold is beginning to look better but we arelooking for a close above $1,207 to confirmthese metrics. For now, traders may wish to stand aside and allow the market toprove its direction.
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