Did Gold, Silver Find A Bottom?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As the gold and silver bears try to push the metals lower and the bulls are nervous, have gold and silver found a bottom? The answer is: there is evidence that the bottoms may be in but there is still a lot of work to do to be convincing.
Although we keep our long-range bullish posture and are not selling our gold investment, we are certainly concerned here. Our short-term views are neutral to short; of course, the short came last week when support was broken. We certainly would not liquidate or create a short position at the current levels. The key levels are $1,275-$1,280. Tuesday’s low of $1,282 may have been close enough, but observation is the key here.
In a perfect world, gold will or has found the bottom and the best action from here would be consolidation. A dead-cat bounce or big rally would be more of an indication that there was more room to go down, while consolidation would indicate the lows being in. We will sit back patiently waiting for a sign from the markets before building a new position.