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Gold preparing for a big move

Commentaries & Views

For the past seven trading days the gold market has been winding tighter and tighter, indicating a big move is on the horizon. In fact, since Oct. 11 every day the pattern has wound tighter and tighter. The last six days have all been inside of Oct 11.

All this action means that a big move is on the horizon and the question that remains is which way. Gold bulls will make the case for the next move to be higher and the bears will say the next move is lower. In this business that tells us the uncertainty of it all.

The next move should be lower based on the downtrend that started in mid-August. The key to watch is the $1,500 level in December gold futures. Without a close above $1,500, we expect $1,480 and then $1,460. In other words, we are short and will stay there until there is a close above $1,500.

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.