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Gold Explodes Before Pulling Back

Commentaries & Views

Although we have been bullish gold since the $1,280 level and achieved our first target of $1,500. All week we wrote that gold would churn around this level before finally breaking out. However, with all of the troubles around the globe and all central banks cutting rates Gold exploded on Wednesday trading as high as $1,522 December futures.

The big question is where gold and silver go from here. That is a tough question because silver has trailed gold throughout this rally and the ratio between the two has expanded. The rally in silver should continue while we expect a pullback to $1,500 in gold.

When investing or trading, pullbacks or sell offs are healthy for markets. We would welcome a pullback in gold and are still buyers looking for our next target of $1,600. This mornings pullback is expected with the speed and parabolic move from Wednesday.

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.

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