Gold Price Reaches Key Level

New York (July 25)  Once again gold has reached a key level -- this time at resistance. Support held at $1,200 and now gold has reached the $1,260 level, which appears to be putting the clamps on the rally. One major concern is the dollar; the last time the dollar was at these levels, gold was 10% higher.

The FOMC meeting is today and tomorrow, with the Fed’s decision on interest rates due out Wednesday at 2 EDT. The dollar manipulation and central bank interference could create headwinds for gold at these levels. It looks like resistance will hold and gold could retrace back to $1,240.

Markets have been painfully quiet and should remain that way until the Fed makes their statement on Wednesday. Look for gold to trade in a range the next few days.

KitcoNews