Gold's Weakness Suggests Investors Continuing To Raise Liquidity

By Kitco News / February 07, 2018 / www.kitco.com / Article Link

(Kitco News) - Gold continues to experience pressure as investors generateliquidity in the wake of the global equity shakeout. The bounce in equityvaluations yesterday was actually a negative for gold prices, as investors assumedthe recent drop was merely a retracement, as with past sell-offs, and jumpedback into the equity space. Gold, a proxyfor liquidity, came under selling pressureas investors raised cash to average into the equity trade. The dollar hasgained, as foreign investors also piled into yesterday's open swoon, on theindexes. The volatility in the equity space is not over and gold remains aviable hedge. Technically, gold needs to hold the $1,320area with $1,332 a target for a break higher.

By Peter Hug

Contributing tokitco.com

Contactnewsfeedback@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.

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