Moment Of Truth For The Metals
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.