Gold's Groundhog Day
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.