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Gold's bullish action

Commentaries & Views

After all the fear and weak hands selling gold and silver, the metals appeared to bottom on Wednesday. As we have detailed for weeks the $1,500 level was the key and the recent action suggests that we are correct.

On Wednesday gold held $1,500 with a couple of pushes below but ultimately held and closed above the key $1,500 level. More impressive was gold did not experience a dead cat, oversold bounce; it had a soft rally showing a lot of strength, holding key support.

Looking at the action in the metals the fact that the rally was not a spike higher but a battle to hold the key support, suggests this rally is not over and a run higher is still in the cards. This morning gold is trading at $1,512 December futures and again reminding you that the key level to watch is $1,500. We remain long and bullish until proven otherwise.

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.