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Trading Action In Gold Perfect

Commentaries & Views

As frustrating as it is for gold and silver bulls, the trading action in both is very positive. Indications are that the metals have seen the lows. That doesn’t mean they will go straight up, but it does support the theory that the lows are in.

When gold hit $1,369, it fell off a cliff, falling over $200 to $1,167. This was basically a four-month sell-off where the bottom pickers got destroyed. There were no real rallies or dead-cat bounces, just continued selling. It was very ugly out there.

It now appears the selling is over, and some new money is starting to show up. Like all markets, new trends are born from consolidation, the time of most uncertainty. Gold and silver are now in consolidation, and eventually they will break out and continue the downtrend or start a new trend up. We believe the bottoms are in and the next move will be higher.

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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