Triland: Gold Needs To Reclaim $1,600 To Boost Market Confidence

Gold needs to reclaim the $1,600-$1,605 area to regain market confidence, says Triland Metals. Otherwise, the focus could return to the $1,525 area where the metal held last month. Gold sold off Thursday when the market was disappointed that Federal Reserve Chairman Ben Bernanke, in congressional testimony, did not signal more strongly than further quantitative easing was in the works. Triland compares the situation to the sell-off from the late-February highs after a similar Bernanke appearance. Hopes for more easing had picked up when Friday’s U.S. May non-farm payrolls report fell below forecasts for the third month in a row. “On huge volume, the gains of the last few days have been wiped out,” Triland says. Sell stops were triggered as gold fell below $1,600, Triland says. The Comex August contract settled $46.20 lower at $1,588 an ounce following the close of the pit session.