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Gold Popping Higher

Commentaries & Views

As we wrote on Friday, gold had at least another $20 to rally before it would find resistance. Gold is now up $15 from Friday’s low and should start to run into some resistance. The $1,275 level should act as the first stopping point for this current rally.

The rally -- whether it’s real or just a dead-cat bounce from oversold conditions --should see some sellers come in between $1,275 and $1,280. That would be healthy for the market and the pattern.

The key to the next move in gold is how the market reacts at the next resistance level and how it reacts to the dip after resistance. We are still cautiously bullish with an exit below $1,240, but the next couple of days should tell the story as to where gold goes next

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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