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[video] Quick Take: Downside Momentum Remains a Risk for Gold

Stocks in this article: GLD SPY

NEW YORK (TheStreet) -- Following volatile morning action, gold prices are slightly higher on Monday, adding to the solid gains seen in the first two trading days of 2014. 

Those gains, however, may be only temporary, according to Phil Streible, senior commodities broker at RJO Futures. He told TheStreet's Joe Deaux that gold may be headed lower to retest the recent lows. 

Deaux pointed out that $1,200 appears to be support for the yellow metal, despite that level temporarily failing in the past. 

Streible suggested that issues such as tapering, higher interest rates and improving economic numbers will weigh on the yellow metal in the next week or two. 

Assuming the economic data remained strong, the S&P 500 will likely continue to trend higher, Streible said.  

If equities continue to move higher, then there will be little reason for investors to sell them and buy gold. If gold falls below $1,200, there will be some buyers of physical gold, he admitted. Ultimately, Streible concluded that gold was still likely to head lower. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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