Gold Gets Hammered; Should We Be Surprised?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Thursday gold took a good old butt whipping, with the yellow metal having its biggest down day in months. By the end of the day, gold was down over $20, sending chills through a few of the gold bulls.
As we have written for months but more important yesterday, we expected a down move in gold. There was a high probability that gold would at best consolidate and at worst sell off. Down gold came and interestingly enough stopped at our support level and bounced.
This type of action in a bull market is very healthy as you shake out the weak hands, forcing them to enter later when the fear of missing out revisits their mind. Our level of support is $1,320-$1,325. Of course, it should be no surprise we remain bullish.