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Did Gold, Silver Find A Bottom?

Commentaries & Views

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.

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.