Gold Rallies; Commodities Get Hammered
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After the ECB left rates unchanged on Thursday, gold took off to the upside, trading as high as $1,313 before giving back half of its gains. This morning gold is under a little pressure, which is probably a buying opportunity considering it has been trending higher since the blow-off bottom on May 14.
Commodities got hammered on Thursday, especially the grains, which are getting pounded again this morning. The dollar is preparing another breakout to the upside on its way to 100. The resistance level of 95 should become a memory in the next couple of days with the euro currency falling apart.
At this point, our expectations are all dips in gold and other commodities should be bought and higher prices are coming. Equities are late in the cycle and should be very close to selling off. With new highs in the Russell and Nasdaq, this looks like the final blow-off, which should bring new money to gold and other commodities.