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Gold Consolidation Continues

Commentaries & Views

The metals continue to consolidate, giving more indications that the bottoms could be in. The consolidation phase is always the most challenging for traders. It is the time of most uncertainty. This phase may create false starts and stops because of the confusion.

Consolidation is also known as the birth of markets and all markets go through this phase about 65% of the time. As we have written the last few days, we would prefer to see gold continue to consolidate.

The longer the consolidation phase lasts, the higher the likelihood the next move will be higher. For months gold has been in a downtrend and still has the possibility to go lower; however, the gold sellers appear to be out as gold churns back and forth between $1,190 -$1,220. We look to be buyers at the $1,190 level and look for a breakout to the upside.

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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