Can Gold Rally Continue?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Can gold keep rallying? The simple answer is yes, although of course, there is the jobs number at 8:30 a.m. EDT that can be a help or hindrance. According to the charts, gold has room to run another $20 before seeing any real resistance. That move can come slowly or all at once, depending on what the job numbers say today.
The action in the metals has been better over the last week and the rally should continue as both gold and silver are working off oversold conditions. $1,240 was the level which needed to hold, and it did. The big question is whether it can hold on a retest.
Although we think the metals will work their way higher, we would not be surprised if they broke down. We are playing from the long side with an exit below the recent lows. Like in all markets, no matter which side you are -- remember where the exit is.