Gold In Holding Pattern
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold remains in a holding pattern hovering around the $1,270-$1,280 level. Every sell-off has been met with new buyers holding the price of gold and silver at their key support levels. This type of action usually indicates that the sellers don't have enough power to break the metals, which should lead to a rally.
The strength of Bitcoin has been weighing heavily on the metals; however, gold's inability to fall below the $1,260 level should attract new buyers. The strong dollar has had little to no effect on metals. With all of the bad news for gold and silver, sellers have been left with disappointment.
With the equity market starting to show some weakness -- especially on Tuesday when they almost completed the trifecta; three major indices made new highs and closed lower on the day – this would also attract new money to the metals. For now, look for this consolidation pattern to hold and when ready, break out to the upside.