KITCO NEWS - The European Central Bank's (ECB) announcement that it is leaving rates unchanged did little to boost gold (GLD) - Get SPDR Gold Trust Report prices, which continue to trade just off two-week lows. Chief market strategist Bill Baruch of iiTrader.com said that a weekly close above $1,300 is needed to spark the bullish golden cross breakout pattern. 'Gold must close out above $1,300 on a weekly basis in order to clearly breakout above the trend line from the 2011 all-time highs and spark the Golden Cross; we remain intermediate and long term bullish,' he told Kitco News. Baruch added, 'The metal is again hugging the 200-day moving average that comes in today at $1,265. The ECB left rates unchanged this morning and sees them at present or lower levels past the QE horizon though economic risks have diminished.' He cautioned to watch the 200-day moving average on a closing basis at $1,264.50. June gold picked up $2.80, or 0.3%, at $1,267.60.
This article is commentary by an independent contributor.