Is This The Day Gold Stops Going Down?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has been struggling for months. Every rally attempt was met by sellers who unmercifully sold. When markets trend lower, there is always the hope of a dead-cat bounce as traders try to figure where it will bounce from. Gold has failed at every post and the dead-cat bounce attempts failed.
Here we are once again at a pivotal spot for gold and we are seeing a bounce, but can it hold? There is one thing we know about markets -- they never announce themselves and trend changes can happen at any time. As traders and investors, all we can do is watch the market footprint and look for entries and exits.
For gold, the trend is lower and ugly. There appears to be more work to do on the downside. Our target remains $1,180 but our expectations of a dead-cat bounce are getting higher. Markets are about probabilities; today they favor a bounce in gold. There is still room on the downside but a bounce from here would be no surprise. Traders should look to take advantage of this move, while investors should be patient while observing.