Gold Prices Fail At Resistance
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Wednesday, gold appeared ready to break out but as we wrote yesterday would probably fail at the $1,275 resistance level. During Wednesday’s session, gold traded as high as $1,282 before reversing course and closing lower on the day. Some will call that a key reversal, when in reality it was simply a pullback in a bull market.
This morning, gold is hovering at $1,275. Our expectations are for gold to consolidate between $1,250 and $1,280 until taking the next leg up to $1,300. This pattern is typical in a market that is looking to break higher.
One of the hardest things for traders and investors alike is to understand the message the market is sending and for now, gold is screaming it wants to go higher. As long as gold holds above the $1,250 level, our expectations are the rally is on and the bull market is here. We will continue to buy pullbacks until that changes.