Is Gold Losing Its Edge? Metal Falls Below Key Psychological Level

Gold (GLD) - Get Report prices fell below the key psychological level of $1,250 an ounce on Monday as the metal saw more profit taking pressure. The move comes after recent gains that pushed prices to a 13-month high less than two weeks ago. April Comex gold was last down $9.00 at $1,245.20 an ounce, extending losses from Friday, when the contract lost about 0.9%. 'Gold continues to require a fresh catalyst to maintain momentum. The dovish Fed and actions by the ECB and the Bank of Japan continue to provide a floor for the metals complex and a renewal of volatility in the equity space will likely resume and create the next leg higher,' says Kitco Metals' global trading director, Peter Hug. The yellow metal was down 0.4% last week, its fourth losing week out of five. 'The overall macro trend is still up for gold - but gold to some extent is a momentum play and after the FOMC meeting that was the time for gold to breakout and re-establish an uptrend and it failed in the $1,270s,' Hug says.

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