Gold Gets Clobbered Along With Equities
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday was an ugly day for gold, as the metal started lower and never came back. Gold has lost $33 from its recent high and is getting closer to our first target of $1,300. Equities didn’t want to let gold suffer alone as they also got clobbered. Both markets are a mess now and are in danger of taking out recent lows.
Manipulation of currencies by the Fed and central banks around the globe is causing this uncertainty in all markets in general. The desire to control the dollar, which helps artificially control rates, is creating problems for investors and should keep the pressure on gold and equities. To quote Oliver Hardy talking to Stan Laurel, “another fine mess you have gotten us into.”
For now, we are sellers of rallies in both gold and equities but expect some rip-your-face-off rallies in between. It would be no surprise to see gold rally today, but we would be sellers around $1,340. Long-term investors should ignore this action; the markets will be higher over time. Traders should be ready to short rallies and continue to do so until gold closes above $1,365.