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Moment Of Truth For The Metals

Commentaries & Views

The metals have been on a wild ride, trading as low as $1,238 on Dec. 12 and as high as $1,365 this morning. What’s next for the metals? What has caused the biggest move in a year?

Once again, the metals have reached that do-or-die moment. They are trading near resistance that goes as far back as September of 2013. Will they continue to break out? Will the resistance level hold?

The big rally has been on decent volume -- not great, but better than the last few years. You might say the weakness in the dollar is causing the metals to rally with the dollar at three-year lows. However, the dollar has been torched for the last three years and gold is basically in the same trading range for the last five years.

Although we are in the observation mode, we will watch to see if gold can close over $1,365-$1,375; failure here should lead to some profit taking. As we said months ago, the bear market in gold was over, but we would expect to see some profit taking here if gold fails to take out the highs.

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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