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Gold prices are consolidating

Commentaries & Views

Gold continues to prep itself for another leg down. The trend is lower and for the last week gold has been churning between $1,480-$1,500 December futures. The pattern suggests that lower prices are coming and $1,500 is solid resistance.

Silver is in basically the same pattern as gold and should start to head lower as well. The overall picture for gold and silver is bleak for now, buyers have not been successful in breaking through resistances levels. This type of action suggests that the metals still have room on the downside, which is also the path of least resistance.

Remember when we talk about levels and where markets stand that is only for the time frames we are watching. There is no doubt that the metal will eventually have a big rally again some day and investors should hold. Traders should be selling the $1,500 level in gold and $17.90 silver, these levels are based on December futures.

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.