Gold's Moment Of Truth
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As we have written all week, the key level in gold is $1,310 -$1,312 with a major level at $1,300. In the last 24 hours, gold has traded as low as $1,306 but is now back above the $1,310 level, showing solid support.
The action in gold remains bullish, and sell-offs to test key support levels are a part of the trading business. The levels used are not exact; they are in-the-neighborhood numbers. The trade down to $1,306 was not a concern and within the margin of error.
Gold looks good as long as $1,300 holds. Obviously we would prefer not to see it test $1,300 and hold over $1,310. However, the markets don’t always do exactly what we want but in this case our opinion hasn’t changed as we remain bullish gold and will allow the weak hands to get out.