Critical Time For Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold had a nice bounce on Tuesday, pushing as high as $1,258 before seeing a little selling pressure but still managing to close at $1,253. On Wednesday with the markets closed for Independence Day, gold got to $1,263 in the Globex session.
The real question – is this a dead-cat bounce or has gold bottomed? The next couple of days will give us the answers we are looking for. If gold fails from here, then it was just a dead-cat bounce. If it can hold the recent lows and build on the rally, the bottoms could be in.
Today and tomorrow bring a lot of economic data, including the Fed minutes on Thursday and the jobs number on Friday. Either or both reports can help answer the question. In our view, the bottoms are in. We are watching with an exit below $1,240.