Gold Continues Higher But I Don’t See The Love Yet

New York (Feb 6)  There continues to be an increased sense of unease in the markets. Metals should be on the defensive, after the equity market rally on Friday and the overnight strength of the dollar. Inflation concerns in Europe, Iran tensions, populism growing in France and Germany, possible trade war with China and protectionism in the U.S., are all pushing capital into the safe-haven hedge of gold. Gold broke above the $1,222 resistance level overnight, which added technical support to the move, with the next target of $1,237 in sight. A break through there brings in $1,250. Momentum remains sketchy and the move from the December lows is a 2 steps forward, one back approach and not the fluidity that we saw in December 2015. That has kept retail investors on their heels. But, we do have an 8% and 12% move for gold and silver, respectively, under our belt.

Source: KitcoNews