Dollar Breaking Out; Gold Price Fails to Hold Support

New York (Apr 26)  As the U.S. dollar is breaking out to the upside, gold failed to hold the higher support level established a couple of weeks ago at $1,330. The dollar breakout should add pressure to dollar-denominated commodities, especially the metals.

Gold has struggled for months and the new-found strength in the dollar is not going to be helpful for the price of gold. The current price action in gold indicates that the metal could break out to the downside and go below $1,300.

Investors in gold should not worry about the day-to-day movement; they should use weakness to accumulate more. Traders should watch the levels and be willing to trade on either side based on the market footprint, not the news or opinions but on technical analysis.

KitcoNews