Make Kitco Your Homepage

What's Wrong With This Picture?

Commentaries & Views

Even after watching markets for 38 years, you always have to ask the question: “what’s wrong with this picture.” The equity markets are under extreme pressure and out of nowhere volatility is through the roof. The VIX rallied 100% on Monday and is up 400% from its lows. Interest rates are at 5-year highs and yet gold has done nothing

From the movie Trading Places when the Duke Brothers were trying to corner the Frozen Orange Juice markets, Mortimer says to Randolph “That can’t be Right” how can prices be going down. This is the same way I feel about gold.

On Monday when the Dow was down 1500 points, gold was still lower, the although it did rally by the end of the day. Looking at all the factors: the weakest dollar in 5 years, full blown panic in the markets and treasury bonds spiking higher, why was gold stagnant? The answer can only be that it wants to go lower. The technicals support a move lower in gold; until the market can break out over 1362, we will stay on the short side as traders.

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.

Precious Metal Charts

Follow Kitco News

Holiday Promo Rose