Contributed Commentaries
Gold Consolidation Continues
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.
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