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Gold's Next Stop $1,350

Commentaries & Views

Last week gold tested the lower levels of support and a couple of days looked like it was going to sell off. However, each time gold looked to be under pressure, buyers stepped in and supported the yellow metal, pushing it back over the key support level.

The action has been bullish, and all indications are to see gold move to the next resistance level of $1,350.This morning, gold is attempting to break out to the upside, exhibiting bullish activity.

If there is one concern with the current rally, it’s the speed in which it has been rising on Monday and Tuesday. Volume is heavy and this could be a short squeeze, which means gold still could fail at the $1,330 level. Gold is in a bull market and any attempt to sell from here should be bought at support, which is now $1,320.

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.