Gold Bounces As Weaker Dollar Spurs Buyers
(Kitco News) - Gold Prices are being influenced by the changing news bytes on who President Trump will appoint as Fed chair, when Janet Yellen’s term expires in February. At first it appeared that Yellen would be reappointed. Monday it was speculated that Kevin Warsh, a hawk, would succeed Yellen and the dollar moved higher. This morning, speculation is that Fed Governor Jerome Powell, a more gradualist, may get the nod, and the dollar reversed. We continue to view the technical picture, which until gold can close above the $1,278 level suggests caution for the bulls. A dollar close below the 112 yen level may be needed to sustain gold above the technical level for a next leg higher.