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Gold Is Getting Closer To A Solid Entry Point

Commentaries & Views

(Kitco News) - Gold is getting closer to our $1,280 target, making an overnight low of $1,284. It appears the sellers are running out of steam but should have one more burst to the downside. The $1,280 level should be a solid entry level with the possibility of going down to $1,260.

Since the highs of April 11, gold has dropped about 6% and is completing the downside move. Volume is starting to dry up and gold is in an extremely oversold condition. Rising interest rates and the strong dollar are the culprits, but those events have been priced in.

While gold is finishing its down move, silver prices have already found theirs. Silver should hold $16 and move higher and run to $17 as the first resistance. The long-term view for the metals is higher as they have made or are near the bottoms.

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.

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