Is Gold In Trouble?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
We often talk about the fact that markets never announce themselves. Wednesday’s trade in gold was a perfect example of that. After peaking in the morning at $1,322, gold sellers became very aggressive, knocking the price down to $1,308 on weak volume.
There are two ways to look at the sell-off. Based on the pattern, we can certainly justify calling the move a blow off. Simply put, buyers were too aggressive early, chasing gold up on heavy volume, which usually ends in failure.
Nothing really changed in gold except for the speed and volume on the rally. However, any time a market suddenly changes direction is something to take notice of. We remain cautiously bullish and are closely watching the $1,310 level, which we are below as I write, and $1,300, which is the ultimate support.