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Gold Fails To Take Out Three-Week Highs

Commentaries & Views

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.

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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