Gold's Yo-Yo Trade
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!
As gold and silver move into the consolidation phase, we continue to see attempts to buy and sell. The rotation of new money will drive investors and traders crazy. This phase of all markets is also known as the torture chamber of investing.
After Friday’s rally in the metals, Monday brought some heavy selling, and this morning we see higher prices. The confusion that traders feel is the one of uncertainty.
The simple fact is the healthiest and most bullish action is to see what we are seeing now. Gold held the $1,280 support and is now churning, which should eventually lead to a breakout to the upside. Only time and the pattern will tell.