Gold Pop And Drop
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Last week gold popped from the $1,240 level as it looked like the bottoms had been put in. The rally from the lows continued through Monday, trading as high as $1,267. After peaking at 8 a.m. EDT Monday, gold managed to drift lower most of the day, losing most of its gains.
This morning gold is down $11 and appears headed back to the $1,240 level and possibly lower. Unfortunately, the metals markets, especially gold, remain weak overall and canâ€™t seem to find new money buyers.
Like all markets, gold and the other metals will resolve the negative trading patterns they are in and will find new money; the only question is from where. As long as gold holds $1,240, we will be cautiously long.