Gold Investors Getting Nervous
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has virtually done nothing for weeks, yet investors seem to be getting very nervous. There is no reason for gold investors to be concerned at these levels as gold continues to consolidate.
Based on the emails I receive and the people I talk to, gold is looking more like a buy every day. We know that when a market is consolidating, it creates the biggest challenge for bit traders and investors who always want that immediate gratification.
Consolidation creates a test of individuals’ will and more often than not puts the trader in an emotional state, which almost always leads to bad decision-making. This time will not be different; gold traders will lose patience and sell. This will create a buying opportunity for those who understand how to control their emotions.
We are still bullish gold and remain there until gold fails to hold the $1,200 support level. We expect the same price action we saw the last time gold was in this pattern from August through October; gold broke to the upside. We expect the same result here, but will exit below $1,200 if it fails.