Near Term Tightening Range Seen in Gold
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The spot price of gold tapped a high of $1607 overnight but failed to hold above $1600/oz for very long. Gold has very strong support at $1550 and $1530, say traders, and the most likely near term outcome is a tightening range pattern pending a significant breakout on either side.
Gold prices were trading upwards of $1640/oz last week, but sold off late in the week after comments from Fed officials offered no clear path toward further quantitative easing. Gold is also suffering due to dollar strength, as investors around the globe view it as a relative safe haven compared to the Euro and emerging market currencies.
Gold might get a catalyst this week as Fed officials provide clarity to questions surrounding QE. The gold ETF, SPDR Gold Shares (NYSE: GLD), is expected to open flat to slightly lower on Monday at 154.66 compared to a previous close of 154.73.
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Gold prices were trading upwards of $1640/oz last week, but sold off late in the week after comments from Fed officials offered no clear path toward further quantitative easing. Gold is also suffering due to dollar strength, as investors around the globe view it as a relative safe haven compared to the Euro and emerging market currencies.
Gold might get a catalyst this week as Fed officials provide clarity to questions surrounding QE. The gold ETF, SPDR Gold Shares (NYSE: GLD), is expected to open flat to slightly lower on Monday at 154.66 compared to a previous close of 154.73.
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