Bill Baruch, senior market strategist with iiTrader, said the “fear trade” is helping to support gold above $1,300 an but there are not many other factors that will help push the price higher in the near-term.
He added that expects to people will move into cash, taking a wait-and-see approach, but the market is expecting to see this problem be resolved.
“There is not a lot of value seen at levels of $1,400 and that is why the market is staying in check at these major levels,” he said. “You are starting to see the equities come off the lows and the bonds come off the highs what this is saying is the market is pricing in that this deal is going to get done,” he said.
On Sunday, the House of Representatives passed legislation to keep the federal government open, which also includes a one-year delay for the Affordable Care Act. The U.S. Senate won’t reconvene until 2 p.m. EDT Monday, and they are expected to once again strip the legislation of any reference to the health care law.
By Neils Christensen of Kitco News nchristensen@kitco.com