Gold Could Test Levels not Seen Since 2010 as U.S. Dollar Continues to Show Strength

Gold is close to trading with an 11 handle as the yellow metal struggles to find some support. Tom Vitiello of Aurum Options Strategies tells TheStreet’s Jill Malandrino it is no surprise to see gold struggling because the U.S. dollar trades very strong, and the euro too for that matter. Despite global conflicts and volatility creeping back into the S&P 500 and other asset classes, Vitiello explains that gold is not being viewed as a safe haven asset because any pop has been short-lived and it is not impacting the U.S. dollar. The trade will start to get interesting if the shorts get out of the gold, because when that happens it tends to send a bearish signal as there is more room to the downside since there is no buying to cover.