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Gold Rush Blow off Pattern

Commentaries & Views

The runaway in gold rolls on; the breakout to the upside continues. This action as bullish as it looks is starting to look like a blow off to the upside. Suddenly price and time have become irrelevant and nothing is holding back the buyers.

We have been bullish on gold since early June and are still positive on the yellow metal. However, this action suggests that a near term top is coming. There is no way to tell exactly when the rally will end but the price action now is more of fear and greed which typically signals the end is near on this leg up.

We are not predicting a top nor are we liquidating our longs. However, we do see reasons for concern as the bond bubble grows, the currency wars intensify, and buyers have now fear. Silver has been moving higher but is now starting to mimic gold and is accelerating too quickly. We understand that prices can continue to rise but are now concerned that a pullback is near.

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.