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Gold Fails at Resistance

Commentaries & Views

Like Groundhog Day, gold continues to do the same thing over and over again -- bounce off support and fail at resistance. This pattern known as consolidation has tormented traders forever. New money comes in as buyers rally and just when you think it’s safe, new money comes in from sellers.

This type of action is healthy for the market, not so much for the trader and nervous investor. There is one fact we know for sure, and that is gold will break out of this range. We don’t know which way yet, but we do know the longer it churns, the bigger the move will be.

There are opinions on both sides of the gold trade. Some think the selling will resume, and others believe that gold is going higher. We believe the bottoms are in and the next big move will be higher. However, this torture of congestion can last longer than we think, torturing both the bulls and the bears.

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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