Gold Prices Spiking Higher Again
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
$1,500 here we come as gold is popping higher again this morning. Gold traded $1,415 overnight and shows no signs of slowing down. Will this rally last? The simple answer is yes and no. Now there is an answer with a lot of commitment.
Actually, the yes-and-no answer is within our expectations; the gold rally is on but there will be a sell-off sooner rather than later. The overall enthusiasm toward the yellow metal is getting a little overdone and a sell-off is due. Because markets don’t announce themselves, we can’t say when, but our assumption would be to see some selling in the next couple of days.
The trend has changed and $1,500 is in the cards but as with all markets, the trajectory of this move higher tells us that there will be a pullback to $1,380-$1,390 soon. Obviously, the exact date and time is impossible to pick but you can see it’s coming. Before $1,500, look for a sell-off and use that pullback to buy.