No Surprise, Gold Is Consolidating
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After failing to break out over $1,300 last week, gold has found itself in a consolidating phase. Based on what we have written for months, this phase should be no surprise. Consolidation is one phase that all markets go through and is the most challenging as it confuses the bulls and the bears.
The levels in gold are now $1,280-$1,300. This should be a challenging time until it breaks out one way or the other. Our expectations are that gold will break out to the upside and continue the bull run it has been on since our buy level of $1,180.
Because consolidation is the toughest pattern to trade, investors and traders must exercise patience and discipline. Although we are bullish and expect a breakout to the upside, we will observe the consolidation phase until we get a close over $1,300.