Surprise Gold Holds Support
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!
I hope no one is surprised that gold held support on Tuesday. As ugly as the day was, gold managed to climb back over $1,320 after trading below it much of the day. This was consolidation at its finest with many false breakouts.
The torture of consolidation always proves the toughest pattern to trade, as the bulls and bears keep switching direction, punishing the momentum traders. This is why consolidation is also known as the greatest time of uncertainty.
The phases of the markets repeat over and over again and eventually break out to a trend. The metals will break out again and based on the prevailing trend, the move should be higher. As traders and investors, it’s our job not to get chopped up when the consolidation is in play. We are bullish the metals but will wait for a move out of this pattern.