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Is $1,300 Gold a Viable Target?

Commentaries & Views

Metals spiked to the target we suggested a mere five trading days ago and gold sits at a crucial pivot of $1,278, which if breached on a close basis suggests $1,300 is a viable next target. Since the "crash" three weeks ago, which saw gold test $1,210 and silver flirt with the low $16's, retail investors have been overall net sellers into this market, whereas funds have been buyers. The Fed may still go in June, if for no other reason but to buy insurance against the next slow-down, but we remain skeptical. The dollar, from a technical basis looks weak and if we get any capitulation in the equity space, gold's bear market may be over. It's early days, but the resilience in the price of gold, with a strong equity market and until recently a somewhat stable dollar, indicates that "big" money is nervous. If you are selling to take profits "cool." If you are selling because you feel you do not need a metals component as a hedge, you may wish to re-think your strategy.

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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