Like Magic, Gold Trades To Our Levels
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Last week gold had a blow-off to the upside, and the buyers couldn’t get enough until the rally failed. We expected failure based on the action and wrote that expectations were for a sell-off back to the $1,380-$1,390 level. In a move that Houdini would have been proud of, gold magically trades at $1,384 overnight
Understanding how markets work is as important as putting yourself in the right position to benefit from the next big move. The picture in gold was clear; support is $1,380-$1,390, and here it is trading $1,390 early this morning.
The big question from here -- is the $1,380-$1,390 level an automatic buy? The simple answer is a simple maybe. If your objective is to buy and hold, then the answer is yes you can buy it now. If your objective is to trade gold, then the answer is watch the levels and wait for the support level to hold. Either way, the key is to understand what the market is telling you and know where your exit is.