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Gold Fails To Hold $1,300

Commentaries & Views

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.

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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