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Gold: Where Are The Buyers?

Commentaries & Views

As gold continues to get hammered, there doesn’t appear to be any new money buyers willing to step in here. This morning gold traded as low as $1,236. As we wrote yesterday, the key levels are 1,235-$1,240. Failure here could lead to $1,200 and below.

The trading action has been about as ugly as it can be, basically straight down about $120 with hardly a rally. We can blame economic data, the strong dollar and about anything else, but the bottom line is the sellers are more aggressive than buyers.

Remember -- markets don’t read the economic reports; they facilitate trade. Humans and programs written by humans trade, and markets move on emotion. Gold will find a level where new money will come in but for now below $1,235, we expect a run at $1,200.

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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