Can Gold Prices Bounce?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Not much has changed in the gold world, as rally attempts are immediately met at the door by sellers. There appears to be no hope for the metals. Even Vanguard is throwing in the towel on one of its gold funds. All hope is lostâ€¦or is it?
Like with any market, the metals markets go through different phases and trends. The trend is down and until there is a reason to believe that has changed, sellers will continue to be the strong hands. There will be rallies which will continue to be sold because of the phase the metals are in now.
However, all hope is not lost. Like all markets, the strong hands will change and the metals will rise again, but until then the only logical place to be is short or neutral and observing. The key levels remain at $1,180 support and $1,240 resistance and until gold closes above or below one of these levels, we will remain neutral and observing.
There are two major announcements this week, and either one can push gold through support of resistanceâ€”the FOMC on Wednesday and jobs report on Friday. I expect to see a dead-cat bounce in the next day or two, but until this range is broken, the bears are in control.