Gold could be facing a bumpy road ahead in the short-term, according to VTB Capital analyst Andrey Kryuchenkov.
In comments made to Reuters, Kryuchenkov said that European policymakers “need to convince the market that the crisis can be contained.”
With respect to gold, it “is trading completely against the dollar, moving in the opposite direction … and the physical side of the market is very quietly waiting on the sidelines for a pullback to start buying,” he contended.
“Gold could have a knee-jerk reaction,” Kryuchenkov added, “especially if there is disappointment with the meeting today.”
As for specific gold price levels to keep in mind, Kryuchenkov pointed to $1,680 as a critical support area. If the yellow metal fails to hold $1,680, he predicted that gold could suffer a quick decline to $1,600 per ounce.
Klondex Set to Advance Fire Creek Development
* Fire Creek is strategically located between the past producing Mule Canyon Mine to the north and the world-class Pipeline and Cortez gold deposits to the south.
* The property is readily accessible via Federal and state roads, is close to the electrical power grid, and is within 50 miles driving distance of two large mills.
* Klondex recently announced that its active 2011 surface drilling program continues to find new gold veins and to expand the scope of the resource at its Fire Creek.
