Has Gold Price Bottomed?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Before hitting rock bottom, we must admit there is a problem. We have certainly seen that the problem in gold too many was bottom fishing and not admitting there was a problem. Gold appears to have found the lows at $1,240 and is trading higher this morning.
This could be just a dead-cat bounce or a short-covering rally, but the fact that the lows held could be the start of something. We never know for sure, but the probabilities indicate that gold and silver have room to rally.
Today is a short day with markets closing at 1 p.m. EDT. The set-up for gold and silver are good with the Fed minutes on Thursday and the jobs number on Friday. As long as gold stays above $1,240, we will remain long, but we have a defined exit in case this is just another relapse.