NYMEX Trader: Gold Will Be Under Pressure Until These Dynamics Change

Gold continues to see some choppy trading as U.S. equity markets and the U.S. dollar rise. Bill McCarthy of Kottke Associates explains to TheStreet’s Jill Malandrino gold will remain under pressure until things reverse in U.S. dollar strength and global monetary stimulus policy. As the U.S. economy continues to improve and Japan and Europe struggle, global investors are pouring money into the dollar, which in turn is propelling equities and hurting gold and much of the commodity complex. A key level to watch in the near term to the upside is $1,180, with a big congestion zone from $1180-$1215. There are a number of projections to the downside starting at $1,100 all the way down to $600.