Make Kitco Your Homepage

Gold Prices To Test $1,280

Commentaries & Views

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!

Gold continues to be under pressure and now appears destined to reach the lower end of the trading range, which is $1,280. After being under pressure on Monday, gold recovered much of its losses to close back above the $1,290 level.

This morning gold is once again under pressure and certainly looks to be headed lower. The dollar is weak as well, which shows that there is not always a correlation between gold and the dollar. The pattern shows weakness and the sellers are in control.

If there is any good news for gold and silver, the lack of volume and conviction to the downside indicates that this recent sell-off is due to a lack of interest. Typically, in dull markets, equities drift higher and commodities such as gold drift lower, which is exactly what we are seeing. We remain long-term bullish, short-term bearish and will watch the action around $1,280.

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.