Make Kitco Your Homepage

Gold Oversold And In Danger Of Breaking Down

Commentaries & Views

(Kitco News) - Gold is lower again this morning and last week’s rally to $1,340 is a distant memory. The only thing that can help gold here is the oversold conditions and a dead-cat bounce. The pattern in gold is ugly, making lower highs and lower lows. Now, $1,300 is the key level that gold must hold or $1,240 is in the cards.
There are so many things that are in play here when it comes to the metals. The dollar is gaining strength, the commercials have one of their biggest short positions and the pressure is mounting. Momentum is certainly to the downside

This action is a creation of the Fed and central banks around the globe as they continue to manipulate interest rates and the U.S. dollar. This manipulation is the only thing holding gold at these levels. We expect the Fed to lose control of the dollar, which should put pressure on gold. For now, watch the $1,300 level. If that fails, $1,240 is coming.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News

Kitco Offers