Is It Time To Buy Gold And Silver?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Now that the metals have hit our downside targets and have bounced, is it time to buy? The answer is not as easy as one might think. As an investor, you can always buy as long as you are investing money that you don’t need for the mortgage, car payment or other daily living expenses.
As a trader, the buy was near the $1,180 level. It’s now time to watch and see how far this bounce can take gold. Somewhere between $1,210 and $1,240 should be resistance. We are looking for the markets to consolidate before making the next big move, which we believe will be higher.
The trend is still down and until that changes, there is no reason to believe that gold will continue to rally. The key here is the pattern that develops. We are not sellers but are not aggressive buyers either. Since all markets are born out of consolidation, being patient enough to wait and observe is often the best trade.