Did Gold Bottom On News From China?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Over the weekend, the big news was the possible deal made with China and the United States on the trade wars and tariffs. Sunday night on the initial opening of the markets, gold hovered around the unchanged line before selling off and testing very near our $1,280 target, trading at $1,281.20.
Gold held that low and we would consider that close enough to our target. We are now looking to be buyers. Although $1,280 could still play as well as $1,260, the worst of the selling should be over. We are now buyers on dips and would look to build a long position.
The gold/silver ratio continues to fall; this was 83 and is now down to 78 on its way down. Although we think gold has bottomed or is very near, we still like the trade of selling gold and buying silver. In any case, the metals in general have bottomed in our opinion and the question is how big the rally will be.