Gold crush or gold rush
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
So far there has been no real surprises in the gold market. Last week gold rushed to seven-year highs at $1,566; today gold sits at $1,502. The overnight range is 1494 – 1508 with it sitting at 1502, as of 6:30 AM EDT. Notice the back and forth around the 1500 level, as traders decide if the rally is over or this is just another buying opportunity.
The case for either side is not clear; if support doesn’t hold, gold could get ugly, but if gold holds, we could see $1,600. Based on the market footprints, support should hold and the rally continues. The answer will play out over the next few sessions, but the answer lies in the $1,500 level. If the level holds, it’s a gold rush, if not it could be a crush.
The key to remember is simple, watch the levels and relax. Panic does not mix well with trading and investing it creates bad decision making. Emotions have no place in the investing world, when traders and investors let emotions take over, they lose focus money and opportunity. Watch the levels, let the markets trade and make decisions based on the pattern, not fear.