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Gold Price Explodes

Commentaries & Views

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.