Flushed -- Is There Trouble Ahead For Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.