Make Kitco Your Homepage

Gold Tries to Rally but Stalls

Commentaries & Views

Thursday, gold was under pressure, but it did make an attempt to rally. Gold did get positive for a few minutes before closely marginally lower for the day. The action is exactly what we called for, which should lead a period of consolidation.

The action in gold and silver is bullish and should lead to much higher prices although a period of consolidation would make the pattern more bullish. The straight rally from Wednesday needs to resolve itself by pulling back.

Gold should see a sell off to support at $1,500 before resuming the rally. We are expecting a run to the 1600 level and possibly higher. Silver should pullback to 1650 before taking a run at 18. We expect the next move in Silver to be bigger than the rally in Gold to reduce the ration between the two.

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.