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Gold Going, Going Gone

Commentaries & Views

Failure are the words to describe the action in gold as it got crushed on Tuesday, violating key support levels, and is lower again this morning. The action is ugly and figures to get worse before it gets better.

The Major League Baseball all-star game was Tuesday night and there were a record number of home runs in the game. It appears that gold is taking the opposite side and striking out daily. At this point, gold looks like the next stop is $1,200 and below. Normally with the pattern that gold had been in hovering around major support, we would have expected a dead-cat bounce.

After Tuesday morning’s early bounce, the sellers took full control, leaving the bulls to lick their wounds. We are out; we are not sellers but would now consider selling rallies. Gold has broken down for now and has a lot of work to do to regain buyer confidence. At this point, the umpires have called strike three.

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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