Make Kitco Your Homepage

Is Rally Over In Gold?

Commentaries & Views

Everyone wants to know if the rally over in gold and what to expect next. Although nothing is ever 100% when it comes to trading and investing, based on the footprints being left in gold, the answer is no. In fact, the recent action in gold has been expected and should lead to the next leg of the rally.

Although gold has had a rough couple of days, it has managed to hold the $1,380 support level. As we have written the past few days, gold is in consolidation and as long as support holds, there is no reason to believe that the next leg won’t be higher. Consolidation is the toughest pattern for traders to deal with because it is the greatest time of uncertainty.

There could be some big movement over the next couple of days with Federal Reserve Chair Jerome Powell on the hill giving his two-day testimony on the state of the banking system. His testimony will be published before he starts, but the Street will be listening to the questioning. The interpretation of his words can create some big movement in markets, including 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.

Precious Metal Charts

Follow Kitco News