Make Kitco Your Homepage

Gold Getting Ready To Make Move

Commentaries & Views

Gold showed a lack of enthusiasm Monday, indicating a couple of things. First, gold is still weak and stuck in the lower end of the range, which we saw when it couldn’t rally when the Dow was down over 500 points on Monday. This once again points out the fact that gold is not a fear asset but a hard commodity.

Second, gold continues to linger in the $1,280-$ 1,290 area with a bias to the downside. The range is getting tighter, indicating a much bigger move is coming. Based on the pattern, gold is about mid-range for the last eight months, meaning it can go either way from here.

If you were to set the odds of which way the next move will be, I would say lower until proven otherwise. The trend is down, the pattern is down, and other than some brief bursts to the upside, it looks like the sellers are in total control. Gold looks headed to $1,220-$1,240.

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.