Gold Pauses But Pressure Remains

(Kitco News)- Gold's break to the downside was signaled on Friday when theeuro failed to hold support at the 1.15 euro/dollar level. Traders werereluctant to sell into the weekend but the momentum accelerated on Monday. Theissues with Turkey should have provided some safe-havenbuying but the flows went into the dollar, as traders ignored gold's historicrole. The selling in gold has abated somewhat this morning as the dollar hasgiven up some of its gains but the pressure remains to the downside in thecommodity space as pressure continues to build in the emerging economies. Goldwill need to recapture the $1,202 level to regain some bullish momentum. Firstsupport is seen at $1,192 and then again at$1,187.

By Peter Hug

Contributing tokitco.com

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