Gold, China – What’s Next?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday’s whipsaw in gold was almost as predictable as setting an alarm clock to get up in the morning. Once again gold has found a support level and has been whipping around that support for the last couple of days.
On Tuesday, gold was under pressure and made a quick reversal back to positive territory on to near its daily lows. The action was expected and should continue for the next couple of days or weeks. Gold is building a new support level and it is only a matter of time before the next breakout to the upside.
China was a story on Tuesday as the negotiations look to resume, which created a quick spike rally in equities. This is the story of markets right now – dull, untradeable and waiting for the next big move.
Silver continues to breakout to the upside and is pushing the upper end of yet another new level. Our next target of $17 looks to be right around the corner, making both gold and silver very attractive here. We will continue to buy pullbacks until proven otherwise.