Equities Crushed; Gold Rally Not Very Impressive
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(Kitco News) -Gold bounced on Friday to close above the $1,280 level, which was a good sign for gold and silver. However, overnight with the equities getting hammered, gold attempted a rally that failed at $1,288 and appears to be headed lower once again.
Although we don't look at gold as a safety play against equities, many do, which is why we saw the initial spike during the overnight trade. Gold is higher this morning but well off the highs, and it would be no surprise to see gold move lower from here80-$1,290, and we will not be buyers until we see a close above the $1,290 level.
Based on the market action, gold looks weak. It would be no surprise to see the metal close lower but more likely will continue to consolidate. Observe patiently and don't chase it in either direction.