Gold And Equities Under Pressure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
No surprises here; gold and equities are under pressure. After rallying six days in a row, equities are under pressure and the pattern is consistent with a market top. All rallies to resistance levels should be sold in equities until further notice. The heavy volume and volatility on the breaks, and more importantly the rip-you-face-off rallies, are a sell signal.
Very similar to equities, gold has rallied four out of the last five days, reached resistance in holiday trade on Monday and is now headed lower. The dollar has picked up steam along with the cryptocurrencies, indicating gold is ready for a sell-off. The bottom end of the range and our first downside target is $1,300.
This market action has been brought to you by the clueless Fed and central banks around the globe. They have lost total control and figure to be the black swan event to put pressure on all markets. We look for a stronger dollar, which will put short-term pressure on gold.