Gold Can't Hold Rally
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For the last few days, gold has tried to catch a bid to go higher, but each time it has failed. Since last Wednesdayâ€™s high, gold has attempted to rally each day only to close lower. There seems to be a lot of waiting on gold, keeping the metal from breaking out to the upside.
Every news event that seemed positive for the metals has resulted in a failed rally. Prices seem to be hovering at the bottom end of a range-bound market. Typically, when a market should be rallying and it struggles, indications are that it is going lower. That would be the case for gold here. It has not benefitted from the weaker dollar or any other event that should have pushed it higher.
Expectations are at best a test of $1,300, if not below. There will be new-money buyers coming in; the only question is from what price. The next stop on the way down would be $1,300, but the $1,240 level is in play as well. This is a great time to observe the market for a better footprint, looking for a level to buy or sell.
Keep those stops tight.