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Flushed -- Is There Trouble Ahead For Gold?

Commentaries & Views

Friday was an ugly day for the metals, with gold falling almost $30 and silver almost 60 cents. It was the old “throw the baby out with the bathwater,” as there was no place to hide. The sellers started early and never took their foot off the gas.

The move caught us off guard and changed the dynamics of the overall pattern in gold. It once looked like the bottoms were in but now the $1,240 level has been brought into play. We were buyers and have taken our losses.

Observation is our trade now. We will stay neutral while looking for a new opportunity to buy but are in no hurry. When a pattern breaks so abruptly, the best course of action is to watch and wait for the next pattern to appear.

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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