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Gold slides on Brexit deal

Commentaries & Views

Early this morning the EU and UK agreed to a new Brexit deal. Gold and silver immediately sold off on the news and continue lower this morning. The losses are not huge but are consistent with the down trend in the metal’s markets. There is nothing in the pattern to suggest gold and silver will turn around soon.

As the Brexit deal was announced equity markets spiked at the same time the metals were selling off. Again this is consistent with the recent action in equities. The equity markets should go on to make new highs before this rally ends. It would be no surprise if those highs were made today.

We remain bearish the metals and expect the downtrend to continue. We know there will be rally attempts as the gold bugs try and engineer a bottom however nothing beats price action for determining what’s next for markets. For now, we are sellers of gold at $1,500 December Futures and $17.80 silver.

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.

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