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Gold Holds Support, Bounces Higher

Commentaries & Views

Gold must be reading this commentary every day. On Tuesday, gold sold off right to the support level we wrote about yesterday. The levels are clear and remain $1,320-$1,350. This pattern is known as wide, sweeping consolidation, which is typical for a market getting ready to make a big move.

In the case of gold, expectations are a breakout to the upside. Remember, trying to time the breakout whether it be up or down, in the case of gold, our expectations are it will break out to the upside. The trend has changed. Gold is in an uptrend, indicating the next big move is up.

Silver is still trailing gold, and the pattern is still weak. That doesn’t mean that silver won’t reverse and get into a positive pattern. For now, silver is in a position to break either way. The probabilities are a coin flip, which is not a market we are ready to play yet. Until the pattern in silver changes, we are neutral silver and looking for levels to buy gold.

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.