Gold Price Resumes Weak Pattern

New York (July 23)  President Trump’s jab at the Fed for raising rates, which created a short covering rally last week, has faded from traders’ memories. Even his overt threat toward Iran failed to ignite investor interest. Instead, the jump higher in the 10-year bond benefitted flows back into the dollar and gold backed off Friday’s highs. Investors are losing patience and the weakness this morning has prompted renewed selling on the retail side. I suspect there continues to be demand at lower 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 the technical barrier to breaking higher. Feels a little like ground hog day. Watch the 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.

KitcoNews