How low can the gold price drop? Fed has ‘no excuse’ to not taper after blowout jobs report

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Gold dropped more than 2% on Friday but should key support levels be broken on Sunday night, the price can fall even more, said Bill Baruch, president of Blue Line Futures.

“People would say $1,600 [an ounce] if we really start breaking down,” Baruch told David Lin, anchor for Kitco News. “We’ve still got lows in the year…$1,670 area, so there are areas where the market has held before. What we’re seeing now is sort of the potential breach of the low from June [of $1,750].”

On monetary policy, Baruch said that he wouldn’t be surprised to see the Federal Reserve signal tapering measures by their September meeting, especially if the jobs market continues to improve.

For information on why Monday’s market may open lower for stocks, as well as Baruch’s views on silver, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).




Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.


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