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Is Gold In Trouble?

Commentaries & Views

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.

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.