Pressure On Gold Is Mounting
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has come under pressure the last few days, but from a long-term perspective, the pattern has held up and all signs point to higher prices. We can look at the trade in gold a couple of ways -- we can panic because it’s down 2% from its recent highs or rejoice that it’s still 5% higher than the lows.
In other words, is the glass half empty or half full? We will choose to look at the glass half full. There is no reason for panic as gold surfs around the lower end of the most recent congestion pattern; the action is bullish.
The bears can look for reasons why gold should go lower. If this is the best they can do, they are in trouble. Gold should bounce from the $1,210-$1,220 level and break out above the $1,240 level. Remember, when sellers can’t break it down, there is a rally coming, and that’s what we have here.