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Gold Under Pressure

Commentaries & Views

Surprise, gold and silver are selling off this morning. Actually no one should be surprised, we have written for the last couple of days that the best action for the metals would be consolidation. That is exactly the action we have seen for the past week.

Although December gold spiked up to 1546 last Tuesday, it has been churning between $1,500 and $1,540. This is exactly the type of trade we are looking for. The metals are building a higher low and a new base of support.

Our target of $1,600 gold and $18.00 silver have not changed. The trading action is bullish, and the rally should continue. Equities have found a bid this morning, bonds are under pressure which is keeping a cap on the metals. As we have watched for months another explosive move in gold is just around the corner.

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.