Gold, Silver Stall As Equities Rally Big
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Both gold and silver stalled on Tuesday. Was it because the equities rallied big or was it because they were both at resistance? From a technical perspective, they were both at resistance. It’s that simple.
The metals have had a nice run from the recent lows and it should be no surprise that a slight pause or some selling pressure would come in at these resistance levels. All markets do the same thing on a regular basis as patterns repeat over and over again from different levels.
We look at this small sell-off as another buying opportunity, expecting $1,220 in gold to be support and hold. Gold has broken out of the $1,180-$1,220 range and will now do battle around the $1,240 level. Silver is fighting to breakout above $14.80-$15. We expect both to breakout to the upside after consolidating at their current levels.