Where Will Gold Sell-off End?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
From going up and testing recent highs, gold and silver have turned negative and the big question is when will the selling end? Obviously, there is no absolute or exact level, but by using the charts and the market footprint, we can make an educated guess.
Gold is falling and may need a lifeline to get up. Looking at the chart and the footprint, the bleeding in gold should at least pause if not stop at $1,280. The short-term trend is lower and failure to hold the $1,280 level brings new problems.
We have established that $1,280 in gold is a key level failure that brings $1,240 into play. We don’t predict markets; we play the probabilities, and for now gold has room to go lower. We expect a rally from $1,280, but if the longer-term rally is going to hold, then $1,280 must hold.