Make Kitco Your Homepage

Panic Everywhere - Where Are The Gold Buyers?

Commentaries & Views

As equities continue to get hammered and there appears to be blood in the streets, one must wonder -- where are the gold buyers? The pundits and so-called experts always call gold the fear asset. There is a lot of fear, yet gold is steady to lower.

Traders and investors should never confuse the issue of what drives prices. Many continue to search for the magic correlation. The action in world of equities the last few days should have pushed gold prices higher. However, here gold sits at the $1,240 support level.

Gold has broken out to the upside and the rally should continue from here. We expect to see our next target of $1,275 to come into play soon -- not because of the fear on Wall Street, not because of a weaker or stronger dollar, but because technically it has broken out to the upside.

You want the truth, follow the money.

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.