Make Kitco Your Homepage

Rejected: Gold Price Fails At $1,240

Commentaries & Views

Gold was once again rejected at the $1,240 level, as it tried to break above Wednesday and Thursday only to fail. Gold now looks like it’s headed back to the $1,220 support level, which is consistent with the consolidation pattern that it has been trading in for the past three weeks.

The action, although frustrating, is congestion and often looks to be only a resting spot before gold breaks out to the next resistance level at $1,275. The pattern is bullish and a breakout to the upside appears to be inevitable, but traders and investors must be patient.

The toughest skill to master from a trader or investor standpoint is patience. It’s easy to buy sometimes, hard to sell, but the key always comes back to the footprint the charts leave. News is noise, which 99% of the time is priced into the markets. For now, the best trade in gold is the one of observation.

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.