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Gold's Next Stop: $1,300

Commentaries & Views

Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.

For the last couple of weeks, we have written about the struggles of gold and thought our read was wrong when gold popped to $1,365 before failing. Tuesday showed more of that failure; equities melted down, as did gold. There is a lot of pressure on gold and that only figures to get worse as it approaches $1,300.

After three days of rallying, equities found themselves under pressure and the question is what does Tuesday's sell-off mean? The answer is simple. If there is follow-through to the downside, the tops are in, and if they rally, new highs are on the way.

We believe the black-swan event is the Fed and its clueless monetary policy. The Fed is losing control of the bond market and shortly will lose its last ace, which is the weaker dollar. The dollar looks ready to explode, which should keep the pressure on gold. Next stop: $1,300

Keep those stops tight.

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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