Gold Sticks The Landing
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Like a gymnast, gold stuck a perfect landing as it tumbled from the $1,240 level, holding the $1,200 support level the last few days. The pattern for gold remains solid, although the selling before the landing was rather uncomfortable.
Traders and investors look to the news for reasons to buy or sell when the simple truth is all the news plays out in the chart long before it ever hits the mainstream. The footprint that is seen in the charts accounts for all news, with the exception of a fundamental news bomb.
Gold, like all markets, trades independently from other markets although there are correlations. However, the correlations aren’t immediate and don’t always react immediately.
We continue to be bullish gold and are expecting to see the next resistance level of $1,275 sooner rather than later. As long as gold continues to make higher lows and holds $1,200, we expect the rally to continue. There are always bumps in the road, but gold looks strong and support should hold.