Gold Buyers Should Take A Rest
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Although we are bullish gold and have been tracking the pattern perfectly, our expectations are for a small sell-off in the next few days. The gold rally appears to be losing steam as volume starts to dry up.
The expected sell-off should be used as a buying opportunity, as the new bull market is not over yet. We are looking for the $1,300 level to hold as support and a run to $1,350 as our next target. The concern here is the declining volume, which is typically a sign the market will take a rest.
Today the Fed reports its decision on interest rates, which could be the impetus to push gold lower or create a blow-off top, which should fail. Until further notice, we are buyers in both gold and silver whenever they reach levels of support.