Breakout Or Disappointment
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For the last 10 days, gold has been in an uptrend inside of a consolidation pattern. The question is: Will gold finally break out to the upside or will it just be more disappointment?
There is no obvious answer. Through all of the high volatility in the equity markets, gold has been unable to break out to the upside, as buying has failed on a couple of attempts to do so. The pattern being formed right now is critical to the next big move in gold. If it doesn’t break out from here, it could be headed lower.
Gold is now in an ascending pattern and is poised to break out to the upside; however, with a higher dollar and investors feeling a little riskier, failure could be upon us. There is a lot of uncertainty in the worldwide economy, which should be bullish for gold. The question is -- breakout or disappointment?
Keep those stops tight.