Gold has Found Its Floor; Rallies To 3-Week High – Technical Analyst

KITCO NEWS - With gold prices posting solid gains on Monday, long-time technical analyst Gary Wagner, says the metal has found its floor. "When gold touched the levels of $1,040 -$1,045 an ounce earlier this year, those turned out to be the bottom and I think that will be the bottom," the founder and editor of the thegoldforecast.com said in an interview with Kitco News. Both gold and silver hit nearly three-week highs on Monday. June Comex gold settled the day 1% higher at $1,258 an ounce while May Comex silver settled at $15.976 an ounce, up nearly 4% on the day. The metals rallied as the U.S. dollar index dropped to an eight-month low following the perceived dovish rhetoric coming from U.S. Federal Reserve officials. Wagner added that major support for the yellow metal comes in at $1,200 an ounce, with resistance holding at $1,292-$1,300. "Most interesting is that we have a series of lower highs and higher lows," Wagner explained.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.