Gold Prices Getting Smacked Again
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Monday gold got hammered and looked ugly going so. This morning or in the overnight trade, gold was moving nicely higher until 1 a.m. and the sellers showed up, again reversing the market’s fortunes and taking gold lower again. Silver sellers also continue to dominate, pushing silver lower.
The action for gold is still relatively bullish and it is our expectations that $1,310-$1,320 should hold and a rally back to $1,350 should ensue. Obviously, there are no guarantees, but the pattern suggests gold is going higher and this is just a pullback to support.
We are looking to buy gold at the $1,310-$1,320 level with expectations that $1,400 is in play again. Of course, gold must break above $1,350 and before that must hold support. But that is our expectation today based on the market footprint.
Silver is a different story altogether; the pattern is brutal, and silver can’t seem to get out of its own way. The area around $14.60 is a very key level and with failure there, it could get ugly. If $14.60 fails, $14.20 comes into play. We are watching closely.