Gold Battles Support, Gets Boost From Trump Talk
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold is stagnating around the $1,280 support level while deciding if the lows are in and the bear market is over. Silver is mirroring gold as both the metals are trying to decipher upcoming world events. Both received a boost on Monday after being lower most of the day, popping on comments by President Trump on the new Fed chair.
Metals traders and investors are dealing with many different issues -- waiting for the equity markets to break and trying to figure out what the dollar is going to do next, among many other things. With the equities meandering at or near the highs, gold and silver are seeing less participation from investors as money flows into equity markets.
We stand by our opinion that the bear market is over in the metals. As we wait for the new bull market, we have to watch the market footprints. Investors leveraging up record margin debt and global markets lacking volume and volatility means markets are going nowhere now.