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Gold's Groundhog Day

Commentaries & Views

Gold appears to be experiencing Groundhog Day every day. Like the movie with Bill Murray, gold seems to be repeating the same action day after day. Sellers meet every rally, and even when the rally appears strong, the sellers are ready.

Many are still calling the bottom in gold, which only indicates that there is room to the downside. The groundhog may or may not see his shadow but as it looks now, there will be six more weeks of selling

The key levels to watch are $1,240 on the upside and $1,180 on the downside. Until proven otherwise, gold should be sold on every rally. There is no reason to buy until gold can close above $1,240. Gold will rally again and some day make new highs, but for now it’s the same day over and over again.

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.