Gold meet's Dolly Parton
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Here we go again! Gold -- after falling apart last week and closing below $1,500 on Friday, but holding overall support -- has rallied big on Sunday night/Monday morning. Gold is back over $1,500 trading about $12.00 higher based on the December futures. Is the new bottom in or is this a dead cat bounce?
It appears that both gold and silver have held key support levels. Was the drone bombing in Saudi Arabia the reason that the metals are higher today, or is it the simple fact that they held support? There is no absolute answer, it could be a combination of both.
Markets are simple when one has the discipline to leave their opinions at the door and look simply at the footprints that are being left by the money flow. As it stands now, we are long gold and short silver, which is only based on the market price action. The support level in gold combined with the consolidation pattern, suggests gold goes higher and silver goes lower.