Gold Sellers Running Out Of Steam
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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 Thursdayâ€™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.