Gold Building Higher Base
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Featuring views and opinions written by market professionals, not staff journalists.
Gold proved that $1,180 was a great support level and now is trying to confirm a higher low at $1,220. The breakout through the $1,220 level was a classic blow-off trade -- continued failure at a level and then an explosion through as we saw on Oct. 11.
After making higher lows, which set up the big move higher, gold is repeating that same pattern, and our expectations are to see the pattern repeat. Blow-offs in either direction are resolved in a couple of different ways.
Now that gold has resumed a consolidation pattern, it is doing so at yet another higher low, which is $1,220. The new range for gold is $1,220-$1,240. We will hold longs as long as the level holds. Our expectations are for a breakout to the upside with the next test at $1,275.