Gold gets whacked but holds
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Wednesday the Fed did as expected cutting rates by 25 basis points. The initial announcement sent gold, silver and the equities reeling. The Dow was down over 200 before coming all the way back and closing on their highs. Gold and silver got hammered but once again managed to hold support
If Wednesday’s action taught us anything it should be that the footprints and money flow is the key to all markets. Gold has been ugly for the last couple of weeks but each time it looked like it was going to breakdown and reverse, buyers came in a bought. We are seeing the same action this morning.
The bottom line for metals is simple, as long as the support levels hold, the metals will continue to go higher. There is always the possibility that the metals can breakdown but for now the trend is up suggesting the rally will continue.