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Gold and silver bounce

Commentaries & Views

After Monday’s beatdown in the metals, Tuesday saw an expected dead cat bounce. Oversold markets typically create a bounce back to a resistance level, which is exactly what happened on Tuesday as gold failed at $1,493.50 December futures. The overnight trade saw gold trade to $1,490 and is now lower.

It would be no surprise if gold and silver churn at current levels before failing and heading lower. The next support level should be approximately $1,440 and our target is $1,420 in the current formation. The trend has changed, the metals are headed lower until there is a reversal.

Price action is always the key to the next move and in the metals the action is very negative. For now, we are sellers at resistance and will continue selling until we see a trend reversal again. News, the FED and other data mean nothing without price action to go with it.

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.