Gold Rush Or Dead-Cat Bounce?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and equities are spiking higher this morning, with the Dow up over 300 points, continuing Friday’s late-day rally. Gold, after being up more than $15 overnight, has slowly grinded lower and now is up $5.
The big question is whether this is a dead cat-bounce in markets that are going lower or are the bottoms. We look at this as a dead-cat bounce and a natural rally after a heavy sell-off. Both gold and the equities appeared to have peaked and what we are seeing is a bounce within markets that are headed lower.
The volume and volatility are indications that the tops of the markets are in and these vicious sharp rallies are bounces that should be sold. Gold should fail around $1,330 and bounce from $1,300, while the equities should fail here and make a lower low before the week is over.