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Battle Of The Century

Commentaries & Views

The metals are in the middle of a major bull-bear debate, as witnessed by the last few trading days. After breaking out on Jan. 2 and making recent highs on Jan. 4, metals have started to move sideways to lower. The pattern is typical of a market topping, and this should be the top in gold and silver for now.

Volume also peaked on Jan. 4, giving all the indications that the metals were ready to take a breather. They haven’t gone straight down as the bulls and bears battle it out, but it’s obvious the metals markets are weakening, and the next big move is down.

Unless gold can find enough energy to rally and close above $1,330, expectations are for a test of the lows. The process should take gold to $1,300, $1,280 and eventually down to $1,240, where we will be waiting with open arms to start buying again. For now, we sell rallies

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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