Gold Prices In Trouble
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Just last Monday, the gold bulls were charging, and the yellow metal was trading above $1,300. The charge was higher, and the buyers were stepping in and couldn’t get enough. We warned every day last week that the rally looked like short covering and to watch the $1,280 level.
Fast forward a week and here is gold trading at $1,274, likely headed to the next support level of $1,240. There appears to be trouble, as the sellers have remained in control throughout. The levels have worked perfectly with valid footprints and clarity.
If gold fails to get back over $1,280 in the next day or two, there is a high probability and another big push down. The strong hands are the bears and until gold can close and hold $1,300, rallies will continue to fail, and lower it goes.