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Gold Needs The Plunge Protection Team

Commentaries & Views

Overnight gold went through the $1,200 level like a hot knife through butter. The day has changed but the story remains the same -- there are no buyers for gold at the moment. The sellers are in total control.

At 5 a.m. EDT, gold traded down to $1,191.80 on heavy overnight volume, which could signify we are close to the end of this move down. As we have written almost every day, we are waiting for $1,180 before thinking about owning gold.

We would expect one more blow-off to the downside, taking gold to $1,180 and possibly below. Remember, $1,180 is not an automatic buy; it’s just the next level that could attract new money. The key here is to identify the level, watch to see if buyers start to step in and then buy. If $1,180 doesn’t hold, we could be looking at $1,130.

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.