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Three, Two, One -- Gold Taking Off

Commentaries & Views

Equities got clobbered on Wednesday and this morning we are seeing some follow-through to the downside. Gold and silver rallied on Wednesday but not as much as you would have thought based on the trashing of equities. However, both are joining the Jeffersons this morning and are “moving on up.”

As we have written many times, we don’t look at gold as a safe-haven play; we look at it as a hard asset to which every portfolio should have some exposure. Although gold remains in the consolidation phase, it looks like it’s getting ready to test the top end of the range.

The keys over the next couple of days are -- can gold get to the $1,220 level resistance level? Will $1,220 reject prices, causing gold to sell off again? There is no guarantee, but we expect gold to reach $1,220, resist, have a small pullback and then break out to the upside.

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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