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Is the gold rally back on?

Commentaries & Views

Between the conspiracy theorist, gold bulls and the pundits calling for billion-dollar gold, markets rallied on Wednesday. After Monday’s breakdown gold has managed to rally the last couple of days and again this morning. To us this is no more than a dead cat bounce in a market looking to go lower.

Markets always have small reversals within the pattern that create either buying or selling opportunities. In the case of the current gold action, these rallies are levels to sell. The downtrend started in early September and every rally has been a selling opportunity.

Gold and silver are in downtrends and until there is a reason to reverse, we will continue to stay short and add to our positions. The key levels to watch if the downtrend is going to revers is a close over $1,520 Gold and $18.20 Silver. Pundits, Gold bugs and conspiracy theorists aside we will stay short until then.

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.