Gold Pushes Through $1,200
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After being beaten into submission, gold appears to have found a bottom and has pushed through $1,200. The $1,180 bottom was a natural level at which to look for support to hold, and the rally is not a huge surprise.
Although gold is rallying as expected, this is not the time to get complacent or overconfident. We think the near-term lows are in and gold should rally to $1,220-$1,240 levels; however, this could just be a dead-cat bounce in an oversold market.
We wrote last week about the dumb money, smart money distribution and the dumb money has added to short positions. This action suggests the bottoms are in, but another test of $1,180 or even the overnight low of $1,167 could be tested. We are buyers with caution knowing that there could be a push down before the rally continues.