Gold's Instant Replay
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.