U.S. Gold Fails To Breakout
On Tuesday and Wednesday gold failed to breakout and is now under selling pressure, holding onto the $1,330level by its fingernails. With interest rates rising, although the FED is doingeverything it can to stop that, the offset of the weaker dollar is puttingweight on gold, stalling the drive higher. Coupled with some profit taking and yousee selling pressure on the metals.
Factors that will push goldlower in the near future are higher interest rates, profit taking and astronger dollar, which appears to have put in lows. The dollar should start torally, cryptocurrencies which have been under heavy selling pressure are goingto bounce and the never-ending stock market rally.
The rally in gold was verypowerful and a little profit taking and selling pressure is the best for goldlongs term bulls. A failure to hold $1,330 brings gold to the next level ofsupport, which is $1,310 and lower. We expect to see lower prices for now witha possible test of the recent lows. We remain long term bullish, but bearish inthe short term.
Contributing tokitco.com
Follow @Bubba_Trading
Bubba@bubbatrading.com www.bubbatrading.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.