Gold Resting Or Overextended?

(Kitco News) - Gold moved to our short-term target of $1,322 overnight buta slightly stronger tone to the dollar brought fresh selling into the metalscomplex. Gold appears overextended in the short termand is trying to consolidate but requires a break above the $1,322 level togenerate further momentum. There is support at the $1,311 spot level but abreak through here would bring a test of the $1,302 area. Silver shows support at $17.02 and requires a close above the $17.22area for further strength. As was mentioned yesterday, the metals are closelytied to dollar movements. Continue to watch the 1.20 euro/dollar level forindications of a reversal in recent dollar weakness.

By Peter Hug

Contributing tokitco.com

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