Look Around: Difficult To Be Bearish Gold

Monday July 18, 2016 08:24

(Kitco News) - Gold has settled to unchanged after Friday’s big rally near the close, with the report of the attempted coup in Turkey. The turmoil that will now exist in Turkey given the massive arrests of military and government officials will likely neutralize Turkey’s role as a NATO ally in the fight against terrorism-- another domino that is wobbly in an increasingly volatile region. The industrial metals are beginning to show signs of cracking, as global growth remains problematic. Gold remains a necessary component but remains susceptible to stronger equity valuations, which we continue to believe are stretched. Here we are shooting our police officers. In Europe, fanatics are mowing down people with trucks. Central banks have lost control. Equity bubbles are inflating. Difficult to be bearish gold. The $1,320 level should remain short-term support but a break above the $1,338 level is required to regain momentum.