NYMEX Trader: Gold Still Struggling to Find a Level of Support

Gold is struggling to find a floor, particularly after Japan surprised the markets on Friday, October 31, with a stimulus package. Tom Vitiello of Aurum Options Strategies tells TheStreet’s Jill Malandrino gold and the Japanese yen are exactly correlated if you look back to the second quarter, while trading the inverse of the U.S. dollar. The Japanese stimulus program put pressure on the yen, and as yen goes, so does gold. Vitiello says you would think traders would be looking for a pop here, at least testing the $1180 level , which is big support or the triple bottom. But, we couldn’t even get to $1180, failing at $1175. If gold were to break $1175 you may see a little bit of a bounce, but for now Vitiello thinks it is just scraping the bottom.