Gold Hits $1,300 And Fails
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Our $1,300 target in gold has been achieved and the metal is now selling off a little, which is no surprise. Gold should now go into a consolidation pattern for some time before making its next move to the upside. At the same time, silver almost reached our target of $16, trading as high as $15.96.
The metals are in a bull market now and we see no reason for this pattern to change anytime soon. The metals should start to churn in congestion as they prepare for the next leg up. This action is very healthy and should lead to another leg up.
Technically speaking, the patterns for gold and silver are very bullish. Now that they have both met our upside targets, a period of congestion should ensue, setting up for another breakout to the upside. The levels we are watching are $1,280 gold and $15.60 silver.