The Pressure Is On
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The roller-coaster ride for gold and silver continues. After last weekâ€™s big rally, this weekâ€™s sell-off has taken away most of those gains. The action, although painful, is no surprise based on the pattern that the metals are in.
Gold at $1,300 and silver at $16 are certainly in play here. The failure to take out the top end of the range brings pressure on the metals, increasing the odds that the bottom end of the range is in play.
The sudden burst of the U.S. dollar brings additional pressure to the metals, also bringing $1,240 into play. The metals are going to break out one way or the other and the longer they stay in these ranges, the bigger the breakout will be. Although we are long-term bullish, we are prepared for one last push to the downside.