Gold: Where Are The Buyers?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As gold continues to get hammered, there doesn’t appear to be any new money buyers willing to step in here. This morning gold traded as low as $1,236. As we wrote yesterday, the key levels are 1,235-$1,240. Failure here could lead to $1,200 and below.
The trading action has been about as ugly as it can be, basically straight down about $120 with hardly a rally. We can blame economic data, the strong dollar and about anything else, but the bottom line is the sellers are more aggressive than buyers.
Remember -- markets don’t read the economic reports; they facilitate trade. Humans and programs written by humans trade, and markets move on emotion. Gold will find a level where new money will come in but for now below $1,235, we expect a run at $1,200.