Gold Fails at Resistance
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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 itâ€™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 donâ€™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.