Gold Fails To Take Out Three-Week Highs
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold looked on its way to making new three-week highs Friday but it fell apart at 11:04 a.m. EST, dropping nine bucks in eight minutes, which based on the pattern is no big deal. Gold remains in consolidation as it continues to try and hold support and build a great bottom. This level has held since June and shows no signs of giving way, further proving the bear market is over.
The flop in the new tax plan will only help the price of gold. The one concern could be higher interest rates; however, most investors have chosen to ignore interest rates and the dollarr, realizing that the central banks simply manipulate them.
With the equity markets starting to give way and the consolidation pattern in gold, we look for a run to $1,310-$1,340 and expect no worse than $1,260 to hold. The longer this market consolidates, the bigger the breakout will be, and we expect that breakout to be higher.