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Gold's Instant Replay

Commentaries & Views

Another day, another chance for a gold rally to fail. This has been the pattern for weeks, as every rally is met with sellers. The strong hands push it up; at the same time, they become the weak hands when they reach the top. New money strong hands push it back down, and the cycle continues until gold breaks out one way or the other.

This morning gold is higher. Will this be the day it breaks out to the upside? Although we are long-term bullish, we have no expectations that gold will break out today, tomorrow or the next day. Because markets don’t announce themselves, the best course of action here is to observe.

One major problem traders have is they think they can force the markets. Sometimes the best trade is the one you didn’t make. Until gold shows its hand and breaks one way or the other, we will watch and wait for a reason to play.

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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