Gold makes impressive stand
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Wednesday’s Fed announcement brought a lot of action to the metals as they swung on both sides of unchanged. After being higher most of the day in the green, gold broke hard, testing the $1,480 and rallied to close on the high of the day.
Silver showed the same action as gold, testing the $17.60 level before closing positive on the day. The big question here, are the metals in the process of reversing? The action has not totally turned bullish but certainly has become more neutral indicating they can move either way.
We remain short both gold and silver although not as committed as we were before. The fact that the metals are now consolidating and reversing the downtrend has tightened the trading range and now can break either way. The levels to watch in gold are $1,490-$1,510 December futures and $17.80-$18.10 silver.