Monday, 12 March 2018 21:30 WIB |
GOLD CORNER |Gold OutlookGold Corner
Gold continues to see selling pressure as both the short-term fundamentals and the technical picture have deteriorated. Gold's failure to break above the $1,337 level early last week and the subsequent break of $1,322 overnight suggests the technical picture may have turned bearish.
The FOMC meeting next week is expected to bring a 25-basis-point increase in rates, especially after Friday's stellar job report. Possible talks between North Korea and the U.S. have reduced geopolitical tensions. President Trump's original aggressive stance on steel and aluminum imports has been watered down substantially, with many countries receiving an exemption on the proposed tariffs.
North American retail demand remains elusive, with secondary investment product continuing to stream into dealer inventories. Taken as a whole, there is no urgency to engage on the long side and waiting for a break above the $1,337 level for investors looking to add to positions may be appropriate. For traders, gold should be bound between $1,307 and $1,322.
Source: Kitco News