Gold Holds Support, Bounces Higher
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.