Is The Gold Rally Over?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has had a rough couple of days. Not that there has been selling pressure, but key support levels have been broken. Thursday was the ugliest with a nice rally in the morning but a sell-off the rest of the day.
For now, we will move to the sidelines and observe gold with the understanding that it can now go either way. The next huge level is $1,300 as support. We will not be buyers for at least a couple of days now, waiting for a close above $1,320. The same applies to silver, which has also started to fail. The key level in silver is now $15.50 support and we are looking for a close over $16.
We have not turned bearish yet and will have to watch the levels carefully. Our opinion is still bullish, but we will have to wait for an opportunity to enter again. This could be a dip or a breakdown and we will need a couple of days to watch the action. Remember, trading is not about being first, it’s about defending your capital and risk.