Gold All Dressed Up With No Place To Go
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The misery of consolidation, false starts and lethargic trade. That would be the best way to describe what is going on in the gold and silverr markets. Charles Dickens could write about gold and silver as the tale of two cities, as the gold-silver ratio continues to expand.
The metals bulls will tell you that prices can't go any lower but as we all know, they can. The bulls will talk about the protection the metals offer and the hedge they offer to the dollar and equity portfolios.
The bears will tell you that the metals are breaking down and can only go lower, which they can. They will talk about the failure to sustain any rally, ignoring the fact that the metals are making higher lows.
The funny thing is that both the bulls and the bears are right, which is what causes the misery of a consolidating market. Consolidation will end and the metals will break out one way or the other. The only question is when and which way.