Gold Needs The Plunge Protection Team
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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; itâ€™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 doesnâ€™t hold, we could be looking at $1,130.