Gold Fails To Hold $1,300
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold continued its assault on $1,300, reaching $1,308 in the early-morning hours on Monday. However, that was the high of the day as gold started to sell off and lost $16 from its high before settling at $1,296. We would call that a failure at $1,300, as we were expecting. The fact that $1,292 was the low of the day is a bullish sign that the next time through $1,300, gold could continue to rally to $1,320, the next marker we are looking for.
Silver mirrored gold’s action on Monday and both look poised to take the next step higher. The patterns are setting up for a long-term rally. Gold and silver have ignored the rally in the dollar, the rally in equities and any other market that would normally have given the metals a cause for concern.
This morning, gold is under a little pressure along with silver, with both pushing below Monday’s lows. This looks like a solid opportunity to buy -- $1,290 gold and $17 silver. The road could be a little bumpy, but we believe the lows are in and dips should be bought.