Will G20 Meetings Affect Price Of Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The G20 meetings have begun, and traders and investors are sweating what will happen next to the price of gold. Metals are churning in a range but are trying to break out to the upside. Gold is in a tight trading range and is going to break out big one way or the other; we expect it to be to the upside.
Many markets are in the throes of the most miserable trading pattern we can imagine. The pattern is known as consolidation. Out of this pattern will be a dramatic breakout, which we saw in the beginning of October.
All signs point to higher prices -- the tight range of $1,225-$1,235 in February gold are a sign the market is starting to compress and getting ready to launch. Although gold can go either way, we suspect the odds are greater for a breakout to the upside.