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Gold charging higher

Commentaries & Views

While we continue to see the next move in gold to be lower, we are seeing a nice rally this morning. The rally is not a surprise, we have written for weeks that there will be rallies and until there is a close over $1,500 in December futures, gold is headed lower.

The gold bugs are out in force, believing that with all the world troubles, there is no way for the metals to go lower. For those who believe the conditions in the global markets will send the price soaring there is one question: why hasn’t gold rallied already? The problems aren’t new.

Silver is higher this morning as well; however, neither gold nor silver have broken out to the upside. Both are just testing resistance and we are sellers until there are closes over $1,500 in gold and $17.90 in silver based on the December futures. For now we will consider this rally nothing more than a dead cat bounce

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