Gold Breaches Key Level of Support and Remains Under Pressure

Despite global conflicts in the Eastern European and Middle East Regions, gold volatility remains depressed as the commodity is flat for the year, even though the S&P 500 is up about 8.5%. Mihir Dange, Independent Metals Trader on the floor of the NYMEX, tells TheStreet’s Jill Malandrino, traders are looking at key technical levels and fundamental factors. 1275 and 1350 are key areas of support and resistance, and Dange is concerned that gold is through the 1275 level meaning over the next month or two gold could be under pressure. In addition, fundamentally, equities are outperforming the market and investors continue to rotate out of commodities. Finally, the increasing inflation argument has been there for five years, but has never panned out. Dange believes if we were in a more normal inflationary environment, gold would certainly be at higher levels.