Gold Prices Stabilize After Late Day Sell-Off
(Kitco News) - Gold prices have stabilized after a late day sell-offyesterday. The initial softness was prompted by a pop in the dollar, which waslikely, some profit taking, and not intervention by the BOJ or ECB. A largecommercial order for gold hit the tape after the European close, which drovegold below the $1,332 support line. The market had no issue absorbing the saleand gold stabilized around the $1,228 level, where it is currentlyconsolidating. Republicans are calling for a vote to avoid a government shut-downand rhetoric from both sides today should keep gold from breaking lower. Thedollar has given back some of yesterday's bounce, with the euro once againabove 1.22 euro/dollar and the yen is again approaching the 111 yen/dollarline. Looking for gold to regain the $1,332 level to maintain short termbullish momentum. The $1,222 area is critical support, with a break throughhere suggesting a re-test of the $1,305 area.
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