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Gold: Is it Safe?

Commentaries & Views

In the movie the Marathon Man, Dustin Hoffman gets tortured by Sir Laurence Olivier with rusty dental tools. As Olivier digs the tools into the nerves of Hoffman’s teeth, he continues to ask the same question -- is it safe?

Gold traders and investors have been feeling the same way as we have been tortured by the sell-off that wouldn’t quit. For weeks, we have been targeting $1,180 in December gold and overnight prices fell to $1,167 and are now trading at $1,187. This price was as of 5:42 a.m. EDT.

The question -- is it safe? -- is hard to answer here. Our $1,180 target has been met. We are now watching to see if it will hold. The level should hold. There are concerns that $1,130 could be next but if gold can build a base around the $1,180 level, the bottoms could be in. Remember, nothing is guaranteed to be safe, but $1,180 looks like a spot to buy.

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.
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