Gold Resumes Downtrend After Dead-Cat Bounce
(Kitco News)- Traders hoping for a sustained bounce off the $1,220 supportline were met with continued selling throughout the Asian and early Europeanmarkets. It is beginning to feel like a capitulation event but we prefer toawait the options expiries tomorrow. From these current levels, it will not bedifficult to test the $1,200 strikes, but here, we would suggest a more robustbounce should be expected. The stronger dollar and sheer frustration andresignation on the part of the bulls continue to be the primary driver forlower prices. Physical buying has increased noticeably in gold and shouldsilver find the $14 handle, we expect volumes to accelerate for the whitemetal, with increased premiums for physical product as surpluses dry up. The$1,220 area now becomes first resistance for gold. We see some support at$1,207 and then the $1,200 figure.
Contributing tokitco.com
Follow @KitcoNewsNOW
newsfeedback@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.