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Gold Price Has Bottomed

Commentaries & Views

Metals have appeared to have bottomed out and the selling problem looks to have halted. As we have heard in the past, the first step to curing a problem is admitting you have one. Gold and silver look to have made it through step one.

Now that the hedge funds have poured tons of resources into shorting gold, it’s only a matter of time before the big breakout to the upside begins. Yes, the metals are still stuck in the misery of consolidation, but the shorter the funds get, the more bullish the pattern becomes.

The range in gold remains $1,180-$1,220, but the dynamics behind include the huge short interest in gold that can only lead to one thing -- a short squeeze. We can’t predict when or what will cause the squeeze, but we are willing to bet on it and will continue to do so as long as gold stays above $1,180.

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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