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Gold And Equities Under Pressure

Commentaries & Views

No surprises here; gold and equities are under pressure. After rallying six days in a row, equities are under pressure and the pattern is consistent with a market top. All rallies to resistance levels should be sold in equities until further notice. The heavy volume and volatility on the breaks, and more importantly the rip-you-face-off rallies, are a sell signal.

Very similar to equities, gold has rallied four out of the last five days, reached resistance in holiday trade on Monday and is now headed lower. The dollar has picked up steam along with the cryptocurrencies, indicating gold is ready for a sell-off. The bottom end of the range and our first downside target is $1,300.

This market action has been brought to you by the clueless Fed and central banks around the globe. They have lost total control and figure to be the black swan event to put pressure on all markets. We look for a stronger dollar, which will put short-term pressure on gold.

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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