Gold Miners Get Crushed
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Thursday gold was relatively flat, but the miners got crushed. For some reason, the gold bears decided to sell the miners like they were going to zero. Once again, it looks like the aggressive selling was a huge mistake.
None of the miners were safe, with most falling 5% to 10%. It appeared that the sellers were chasing the short-covering dead-cat bounce in equities. In the pre-market this morning, the miners that were crushed on Thursday are getting bid up and it would be no surprise to see them gain all or most of their losses back today.
Gold is once again on the doorstep of breaking out to the upside. The key number is $1,240 and with the pounding of equities in the overnight markets, we could see gold push through that level with ease. We are looking for a much bigger rally in gold and are targeting $1,275 as the next level.