Make Kitco Your Homepage

Welcome To March; Will Gold Catch A Bid?

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.

Gold and equities continue their tandem trade, as both are experiencing some heavy selling pressure. Wednesday saw the equities get hammered, and gold and oil reverse and go lower. Everything tried to rally but as expected failed, indicating the underlying pressure in equities and the lack of real buying interest in the metals.

Most markets are somewhat range-bound and are working their way lower. The action is consistent with market tops. There should be a bounce soon from the bottom end of the consolidation ranges, and we will look for a spot to sell. Gold looks destined to test the $1,300 level and possibly lower. The $1,240 level is a possibility.

We are in a sell-the-rally mode, meaning all rallies that reach the upper end of the range should be sold until the markets can break out above those levels. Equities, gold and oil all look weak, but a short-term bounce from around these levels would be no surprise. We will remain sellers until a rally can take us above $1,365 in gold, 26,000 in equities and $67 in oil.

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.

Precious Metal Charts

Follow Kitco News

Holiday Promo Rose