Gold Pop And Drop
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Last week gold popped from the $1,240 level as it looked like the bottoms had been put in. The rally from the lows continued through Monday, trading as high as $1,267. After peaking at 8 a.m. EDT Monday, gold managed to drift lower most of the day, losing most of its gains.
This morning gold is down $11 and appears headed back to the $1,240 level and possibly lower. Unfortunately, the metals markets, especially gold, remain weak overall and can’t seem to find new money buyers.
Like all markets, gold and the other metals will resolve the negative trading patterns they are in and will find new money; the only question is from where. As long as gold holds $1,240, we will be cautiously long.