Gold fails at 1520 once again
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The metals appear to have put in their temporary tops and should be headed back down to lower levels. The action has not been bullish, and the recent rallies provide an opportunity to sell. In certain market formations, rallies are meant to be sold and the current pattern we are seeing in the metals is one of them.
There has been a lot of economic news, which could have been a reason for the recent rally, or it could be the simple fact that we were seeing nothing more than a dead cat bounce in an oversold market. For now, that is how we will describe the trading action in the last few days.
The key levels we are watching are $1,520 gold and $17.80 silver. As long as gold and silver stay below those levels, we expect to see a test of the recent lows. When watching patterns and market footprints, it’s important to understand the overall direction. It appears the metals are headed lower.