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Gold Headed Back To Support

Commentaries & Views

Last week’s great rally in gold is just a memory as gold heads back down to its support level. The excitement from gold heading higher every day last week has now turned into the fear that it may go back to the lower end of the range.

Gold was lower on Tuesday and is lower again overnight into Wednesday morning. The congestion period is always the toughest for traders, as the markets have a lot of starts and stops and false breakouts in both directions.

This time is no different as both silver and gold churn in a range. Both look to be headed to the lower end. With the dollar near the lows, you have to ask the question -- why hasn’t gold broken out to highs? The answer is simple” -- there is too much central-bank manipulation, and expectations are the dollar will break out to the upside, putting pressure on the metals.

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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