Gold Continues To Consolidate; It’s That Simple
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Not much has changed with the price action in gold. It is in consolidation. There are pundits and experts out there searching for reasons why gold goes up or down -- strong numbers, weak numbers don’t matter. Gold is consolidating; it’s that simple.
We can look for reasons that gold should rally or sell off, but the chart tells all. There will be a lot of buzz around tomorrow’s jobs number, which based on the ADP jobs number from Wednesday, should be a blowout number.
Interest rates are climbing fast, with the highest yields in years. The Fed is going to panic, especially if Friday’s jobs data are strong. Yet throughout it all, gold has done nothing but trade between $1,180 and $1,220, and there is no indication it will break out in either direction anytime soon.
As you search for the answer of which way gold is going to go next, the important thing to remember is the chart and the footprint tells all. Right now the footprint is like the mouse on the wheel going nowhere fast; it’s that simple.