Gold Price Resumes Weak Pattern

New York (July 27)  Gold is struggling to hold on to the support line around $1,220. Yesterday the ECB indicated that stimulus measures would remain in place through at least mid-2019. With the U.S. 10-year bond flirting with the 3% yield level, traders bought the dollar, which created selling in the metals complex. Today’s second-quarter U.S. GDP numbers will be in focus. The market expects a robust number near the 4% mark. Should this number disappoint and come in south of 3.5%, it may reverse dollar buying and create a lift for the commodities sector. We would consider any bounce with suspicion until the $1,237 technical level can be surpassed. On the downside, we expect minor support around $1,212 and again around $1,207 before a first attempt at $1,200.

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