Gold Losing Its Edge? Metal Falls Below Key Psychological Level | Peter Hug

from Kitco NEWS

Gold prices fell below the key psychological level of $1,250 an ounce Monday as the metal saw more profit taking pressure. The move comes after recent gains that pushed prices to a 13-month high less than two weeks ago. April Comex gold settled the day down $10.01 at $1,244.20 an ounce, extending losses from Friday, when the contract lost about 0.9%.  ‘Gold continues to require a fresh catalyst to maintain momentum. The dovish Fed and actions by the ECB and the Bank of Japan continue to provide a floor for the metals complex and a renewal of volatility in the equity space will likely resume and create the next leg higher,’ says Kitco Metals’ global trading director, Peter Hug. The yellow metal was down 0.4% last week, its fourth losing week out of five. ‘The overall macro trend is still up for gold – but gold to some extent is a momentum play and after the FOMC meeting that was the time for gold to breakout and re-establish an uptrend and it failed in the $1,270s,’ Hug says.

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