Gold Consolidating, Next Price Move Is Higher
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As we look at the recent action in gold and silver, it’s obvious not much has changed. The metals continue to churn in a range holding support every time support is tested. This is also known as the torture of congestion, the toughest pattern to trade.
From our standpoint nothing has changed. The pattern suggests the next big move is higher. As long as the lows hold, the gold rally will continue. Typically, in this pattern there are a lot of false starts in both directions.
The bulls are still firmly in control, but they do run out of steam at the top end of the range. As the bulls and bears change places, the bottom line is simple. After each move, the metals markets have made higher highs and higher lows. For now, we are buyers of both gold and silver at support and see no reason the rally won’t continue.