Gold Resumes Weak Pattern
(Kitco News)- PresidentTrump's jab at the Fed for raising rates, which created a short covering rallylast week, has faded from traders' memories. Even his overt threat toward Iranfailed to ignite investor interest. Instead, the jump higher in the 10-yearbond benefitted flows back into the dollar and gold backed off Friday's highs.Investors are losing patience and the weakness this morning has promptedrenewed selling on the retail side. I suspect there continues to be demand atlower entry points, but strength is being met with skepticism and selling. The$1,220 area remains as a wobbly support line and the $1,237 level is thetechnical barrier to breaking higher. Feels a little like ground hog day. Watchthe 10-year yield: it goes higher, so does the dollar and gold will weaken.Break the 2.85 yield on the 10 year and the momentum will reverse.
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