'Natural' for Gold Futures to Ease After Rocket Rally Says Senior Strategist
Kitco News-- Gold futures ended near steady after their best finish since mid-June. The metal ended the U.S. day session with some mild profit-taking pressure and some technical chart consolidation. This comes following Monday’s strong rocket rally that pushed prices to an eight-month high just above $1,200 an ounce. April Comex gold rose $0.70 cents a share, or less than 0.1%, to settle at $1,198.60 an ounce, tallying a total gain of more than 6% in five sessions. The yellow metal spent much of the session trading lower after prices rose 3.5% on Monday. ‘It’s natural that a market like gold, with a $40 dollar up move, have a bit of a pullback,’ says Phil Streible, senior market strategist for RJO Futures. Speaking with Kitco News, Streible says that $1,200 is a key resistance level, so many traders will look to book profits at that level, ‘thinking it will take two to three times, to test that level before breaking through,’ he explains. Streible adds that if gold manages to break through $1,228, then ‘sky’s the limit’ for the metal, with a possible $1,250 - $1,300 scenario.
