Gold and Silver Testing Support
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
In the worst kept secret, gold and silver both tested support on Monday. The pressure was on from the opening bell, the metals were selling off which was a continuation of the selling that started Friday. Both gold and silver closed near support and are slightly higher this morning
With the equities exploding higher, bonds getting crushed and the dollar making highs the selling was no surprise. The metals are near levels to buy which is $1,500 gold and $16.90 silver.
There has been no technical damage to the charts or the patterns. Nothing has changed in the overall world economy. Friday and Monday were simply a profit-taking sell off which was expected after the huge rallies they have seen. Remember no market goes straight up or straight down. Look for the metals to consolidate around the support levels before resuming higher. We are targeting $1,600 gold and $18.00 silver.