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Critical Time For Gold

Commentaries & Views

Gold had a nice bounce on Tuesday, pushing as high as $1,258 before seeing a little selling pressure but still managing to close at $1,253. On Wednesday with the markets closed for Independence Day, gold got to $1,263 in the Globex session.

The real question – is this a dead-cat bounce or has gold bottomed? The next couple of days will give us the answers we are looking for. If gold fails from here, then it was just a dead-cat bounce. If it can hold the recent lows and build on the rally, the bottoms could be in.

Today and tomorrow bring a lot of economic data, including the Fed minutes on Thursday and the jobs number on Friday. Either or both reports can help answer the question. In our view, the bottoms are in. We are watching with an exit below $1,240.

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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