He Ain't Heavy, But Gold Is
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has suddenly become very heavy, losing the shine and power it had displayed since early July. This is no cause for concern, after all gold had rallied 13% from the recent bottom, we would expect a little profit taking. The last week gold peaked overnight at $1,362 and has since sold off about 3%.
$1,340 was key support then $1,320 and now $1,300 would be the key and major support. Looking at equities, they have made new highs which would take away some money from gold buyers. The Bitcoin broke hard on fears out of China which pushed money into gold. Now Bitcoin has regained much of its strength and is back over $4,000.
The gold and silver action looks normal. There is a Fed meeting on Wednesday keeping the metals on edge, which always results in some selling. We are still considering this the moment of truth and will be watching $1,300 very carefully. The metals bear market is over, looking for the bull to takeover.