Is Gold In Trouble?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Is Gold in trouble? The short answer is yes. Gold has been tumbling for the last couple of days as the markets starts to sell off. With the equities getting clobbered overnight the last three sessions, gold has not been the safety asset that many believe it is.
The lack of volatility in equities is helping to keep the pressure on the metals. We are not from the school that gold is a safe-haven play but just another hard-asset commodity that is now under pressure.
Gold appears to be breaking down and has now brought $1,240 or lower back into play. We are not sellers although we see lower prices in the short run, but we are not buyers either. The trading action is bearish, which is keeping us on the sidelines and looking for an opportunity to buy. The lack of any reaction to the trade war and uncertainty is a concern and will keep us on the observation deck.