U.S. Independence Day - Fireworks In Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
In honor of U.S. independence, gold is exploding and has tested the highs made last week when it saw a blow-off top. On Tuesday, gold was holding our support levels and was steadily rallying. Suddenly towards the close of the trading day, the rally was on and gold closed at $1,421.
In the overnight session, which begins at 6 EDT gold, was celebrating U.S. independence and traded as high as $1,441. The buyers couldn’t get in fast enough and as always happens, the excitement subsided, and the sellers came in, creating equilibrium to the market.
This morning, gold is trading around $1,428 and looks ready to continue to rally. Our expectations are to see gold consolidate; the spike rally was not a total surprise with gold bouncing from support. There is a solid trading range between $1,380 and $1,450, which should continue for a week or two.
We are bullish and will buy the bottom end of the range as we prepare for gold to make a run at $1,500 and beyond. The fireworks are real, but don’t be surprised if there aren’t a few duds along the way and a couple of sell-offs to shake out the weak hands.