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Gold Sellers Running Out Of Steam

Commentaries & Views

The metals markets are attempting to stop the bleeding and find a bottom. It appears that the sellers are running out of steam. Although we have yet to see a reasonable rally and Thursday’s small attempt at one failed, gold was able to hold above the $1,180 level.

The type of action we are seeing now could be known as base or bottom building and a rally could be near. There is a lot of work to be done around the $1,180 level. First it must hold the $1,167 low from the other night. Second, it must start building a floor around $1,180. Consolidation would be the best action.

Gold appears to have found a bottom. There is no guaranty, but the price action suggests that the bottom is in. The best trade here is to watch and make sure the lows will hold. We are small buyers at these levels knowing support could fail and we may have to re-enter at lower levels.

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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