Gold slides on Brexit deal
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.