Trading Action In Gold Perfect
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As frustrating as it is for gold and silver bulls, the trading action in both is very positive. Indications are that the metals have seen the lows. That doesn’t mean they will go straight up, but it does support the theory that the lows are in.
When gold hit $1,369, it fell off a cliff, falling over $200 to $1,167. This was basically a four-month sell-off where the bottom pickers got destroyed. There were no real rallies or dead-cat bounces, just continued selling. It was very ugly out there.
It now appears the selling is over, and some new money is starting to show up. Like all markets, new trends are born from consolidation, the time of most uncertainty. Gold and silver are now in consolidation, and eventually they will break out and continue the downtrend or start a new trend up. We believe the bottoms are in and the next move will be higher.