Tuesday's Rally Not Enough
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
With all the panic in equities Tuesday, the metals did not rally enough, indicating that they are headed lower. Goldlooks to be headed for $1,300 and silver $16.40, where they should find some support.
The metals markets look weak, especially when looking at the troubles equities are having. The action should have created more upward momentum in the metals, but it did not. This suggests that the top end of consolidation is going to hold, and we should now see a retest of the bottom end.
The big difference between silver and gold is silver has broken out to the upside and is selling off to support, while gold has been unable to break out, staying range-bound between $1,300 and $1,365. This is great action for short-gold, long-silver trade.
Keep those stops tight.