A Big Move In Gold Is Coming
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For the past month, gold has languished at the bottom end of the range, using $1,260- $1,270 as a floor, bouncing each time. Most markets, when caught in a consolidation pattern, will break out one way or the other in time. The longer they stay in this pattern, the more powerful the move will be in either direction.
To make a case for the downside is very difficult; there is not a lot of data that would indicate the breakout will be to the downside. The recent strength in the U.S. dollar has not affected the metals, and the biggest bull stock market in history has not really hurt the price of gold. The bottom end of the range appears to be strong, making a break to the downside unlikely.
Metals look like they are ready to break out to the upside. The gold bears have been pushing for months and have not been successful in pushing gold below the key support level. The expected rally will not be easy, but the metals market certainly feels like it wants to break out to the upside and test the $1,310 level.