Gold Prices Fighting To Break Out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Here we go again. After two weeks of consolidation, gold is trying to break out to the upside, $13 higher and sitting at resistance. This action was expected; big breakouts are typical out of the congestion pattern.
The bigger question is where does gold from here? The key level is now $1,240, as a break above brings $1,275 into play. With the global tension and markets selling off, money is looking for a place to go and gold would be the ideal spot if it can break out.
We would expect a real battle at the $1,240 level and would not be surprised if it failed to take out this level on the first attempt. Many markets fail the first time to a new level, and we don’t expect this time to be different. Gold should pull back from $1,240, easing back to $1,230, which now appears to be new support.