Gold Dead-Cat Bounce Or Start Of A Rally?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As we have discussed in the past, markets never announce themselves. With gold rallying this morning, the question is: Is this a dead-cat bounce or the start of a rally? There is no way to know; however, establishing the support level is the key at this point.
For the last few days, we have been watching the $1,235 -1240 level and have stated that we would stay long until those levels were violated. There have been a couple of attempts to break down, but each time buyers stepped in.
With this morning’s rally, we are watching the support levels of $1,235-$1,240 but also the resistance levels of $1,248-$1,250. The action around either one of these levels will help us decide what will happen next. We have no interest in being short gold but will close longs below $1,235 until we can identify a new buy level. For now, we will remain cautiously long.