There Is No Bottom In Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold appears to be in a bottomless pit of selling, and there are no buyers to be found. Even with the equity markets getting pounded on Monday, there were no bids for gold. Either investors feel there is no need for a safety play or the shine has worn off in gold.
Since June 15, just when it looked safe to jump into the gold waters, the market collapsed and continues to fall. Apparently, there is no interest in gold and the sellers are running all over it, suffocating every rally while pounding the gold bulls.
This is a common pattern in any market -- sell first and ask questions later. Although we are not buyers until at least $1,240, it would be no surprise to see a dead-cat bounce short squeeze any day to shake out the weak shorts. The best trade here is to observe.