Gold Better Hold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The torture of a consolidating market is playing out as scripted in the metals. Gold and silver held the lows, rallied to the top of the range and once again are failing today.
With gold now hovering around the $1,200 level, it could go either way from here. The level to watch on the downside has moved up to $1,190 and a close below that could cause issues.
We expect gold and silver to hold the recent lows and move higher. The charts look healthier than they have in months and given our choice would love to see this consolidation pattern continue for a few more weeks as the metals build a base. Typically, the longer the phase of consolidation -- which is usually the birth of a new market -- the more bullish we would be. For now, itâ€™s patience and observation.