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Gold fails at 1520 once again

Commentaries & Views

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.

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.