Gold Prices Hit 3-Week High as Rate Hike Fears Simmer Down

from Kitco NEWS

lass=”” >Gold prices firmed up through the second half of yesterday’s session; climbing to its highest level in three weeks. The precious metal popped on the back of higher crude oil prices and a lower U.S. dollar index on Wednesday. The market is also pricing in extremely low odds that the Federal Reserve will raise rates in June and a slim chance for a July rate hike. An interest rate hike would have diminished the appeal for the yellow metal. ‘Major three star resistance comes in at $1,266.5-$1,267.3, aligning the .618 and major trend line from the $1,308 high; the bulls look to achieve a close above here in order to spark a further buying,’ says Bill Baruch, Chief Market Strategist for Chicago-based iiTrader.com. ‘Traders must also watch silver’s major three star resistance at $17.21-$17.32 and a move out above here will likely spark further buying; gold and silver are most bullish when they work in tandem moving higher,’ he said. Speaking with Kitco News on Wednesday, Baruch explained that failure for gold prices to settle above $1,251.4-$1,254.7 will give the bears an opportunity to steal momentum.

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