Gold Price Has Bottomed
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.