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Pressure Is Mounting In Gold Market

Commentaries & Views

(Kitco News) - After gold reached $1,326, the pressure has been on and gold is ready to test the recent lows at $1,302. It would be no surprise to see gold bounce off the $1,302 level, but breaking through $1,300 is almost a certainty in the current pattern.

The successive lower highs and lower lows indicate that the pressure is mounting on gold’s way to $1,280. Gold is just ugly right now and the added pressure from a strong dollar is just another excuse for the sellers to push gold lower.

Even with the recent pressure, gold has not yet become oversold, meaning a dead-cat bounce is not in the cards yet. We continue to observe waiting to see the action when the $1,280 level is reached. We are looking to be buyers at those levels, depending on the price action when $1,280 prints.

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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