Gold Price Explodes
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
We have written for months that we expected a rally in gold, and it has occurred. There is no reason to believe the rally won’t continue. However, with Wednesday’s explosion higher after the Fed made its usual dovish announcement, gold may have had a mini blow-off to the upside.
The metal’s rally should continue and test the next level of $1,350; however, a small sell-off from here would be no surprise. Wednesday’s rally was on heavy volume and looks to have trapped the shorts, giving the metals an extra boost.
We are not expecting a big sell-off more but likely a consolidation pattern for a while as gold and silver gather new power to push higher. Support is solidly in place at $1,300-$1,310 in gold and $15.75-$15.80 in silver. We will use pullbacks to buy looking for the new bull market to continue.