Gold’s Next Stop: $1,300
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold was under siege on Monday along with silver. The big difference between the two patterns is gold failed to hold support and silver sold off to support. The trade being short gold and long silver remains intact, with the ratio 79-1.
We look at metals in two time frames -- one being long-term investing and two the short-term trading view. Long term, as investors, we are long and like both gold and silver, but as traders we see gold testing $1,300 and possibly lower. In the short term, we like being short gold and long silver, feeling that the ratio should come back to at least the mid 60s if not lower.
Markets allow opportunities for traders and investors, meaning that you can be bullish in one time frame and bearish in another. You can also be bullish or bearish in both; the footprints left by the money are the key in deciding. The one thing to remember -- if you are purely an investor, don’t get caught up in trading, and if you are only a trader, don’t get involved in investing. You can be both if you want but whatever you do, don’t combine the two into one.
Keep those stops tight.