Could I Be Wrong On Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Being a gold bull since July has been profitable and easy to stay long the yellow metal. The run over $1,300 and then the failure to hold is now starting to cause some heartburn and concerns, with gold struggling to hold the key support levels. Is gold starting to break down?
Looking at the long-term pattern, we now have a major concern at the $1,265 level. That level was violated Tuesday, with gold trading down to $1,263 before bouncing and closing at $1,266. Today gold is trading at $1,270 but our concerns are based on a weekly chart; a close on Friday below $1,265 could spell trouble.
The next three days are crucial for gold. If it closes below $1,265 on Friday, that would bring $1,200 back into play, if not lower. We are buyers at these levels but a close below $1,265 on Friday would cause us to liquidate our longs and possibly short this market. We are very nervous bulls but will change our minds on a close below $1,265.