May Day, May Day -- Look Out Below
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Today is the first day of May and the new month is not helping the metals, which struggled through the month of April. Gold has lost about 4% from the highs in early April, with three consecutive ugly down weeks. The recent action brings a possible ugly run into the mix.
Gold is now breaking down through major support and failure here brings the possibility of much lower prices. This week brings a ton of data that can have a dramatic effect on the metals -- the Fed on Wednesday and jobs on Friday. Either or both could bring the metals to their knees or breathe new life into them.
Many are blaming rates and the strong U.S. dollar on the recent decline in metals, which in our opinion is not the case. The strong Fed-manipulated currency has not affected any other dollar-denominated currency, meaning that at this point the metals are weak and must attract some new money buyers or it will be headed to $1,280.
Keep those stops tight.