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Gold: Is it Safe To Buy?

Commentaries & Views

Has gold proven that the bottoms are in? Is it safe to buy gold at these levels? We may have to check with Dustin Hoffman and Sir Laurence Olivier from the movie Marathon Man.

Gold has certainly done a lot of technical work and appears to have made higher lows within the consolidation levels. Our $1,180 level held and then the higher low of $1,190 held, all good signs for gold.

Gold is building a solid base and making higher lows. The concern here with gold popping $10 on Wednesday is will it be able to break through the $1,220 resistance level? We would expect the first trip to fail but more importantly we are focusing on buying at the higher low of $1,200.

The bottoms appear to be in and buying at the right levels appears to be safe. Although we expect a failure from $1,220, we expect the $1,200 level to hold and are buyers there. The footprints indicate that gold is safe and looking for buy levels is the correct strategy from here.

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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