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Gold Prices Get Pounded

Commentaries & Views

Gold got hammered on Thursday and is now testing the $1,280 level once again. The metals are weak and show no signs of reversing the ugly trade anytime soon. We all know that markets never announce themselves and the metals could turn, but they don’t look good.

After Monday’s short-covering rally, which caught many off guard, gold reached resistance and has been coming down ever since. Once again, gold is getting close to a decision point and a break through $1,280 brings $1,240 -$1,220 into play.

The current direction in metals is down and nothing will change that until the pattern changes. As we have written for weeks, gold is a sell at resistance and has a chance to break down completely. However, the price action is the key, and gold and silver will find a bottom. The only question is when? Investors should hold tight and traders should be selling rallies.

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.