Gold Undergoes Retest
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Last Thursday, gold tested the $1,310 level, trading as low as $1,306 before coming back and closing over $1,310. This action is healthy for markets because it shakes out the weak hands while building new momentum at the same time.
It’s Monday and here we go again retesting the $1,310 level, with gold under pressure this morning. This action is a combination of the shakeout and a market in consolidation or the greatest time of uncertainty.
This pattern is always the biggest challenge, which is why we must understand the levels that gold is trading in. We have determined that the ultimate support is $1,300, but we expect $1,310 to hold. Watch the price action around these levels. We expect them to hold and have $1,300 as a backup.