Battle Of The Century
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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 havenâ€™t gone straight down as the bulls and bears battle it out, but itâ€™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