Gold Going, Going Gone
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Failure are the words to describe the action in gold as it got crushed on Tuesday, violating key support levels, and is lower again this morning. The action is ugly and figures to get worse before it gets better.
The Major League Baseball all-star game was Tuesday night and there were a record number of home runs in the game. It appears that gold is taking the opposite side and striking out daily. At this point, gold looks like the next stop is $1,200 and below. Normally with the pattern that gold had been in hovering around major support, we would have expected a dead-cat bounce.
After Tuesday morningâ€™s early bounce, the sellers took full control, leaving the bulls to lick their wounds. We are out; we are not sellers but would now consider selling rallies. Gold has broken down for now and has a lot of work to do to regain buyer confidence. At this point, the umpires have called strike three.