Gold and silver having a weak rally
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After getting pounded four of the last five days, gold and silver are having a weak rally this morning. Other than a dead cat bounce, we see no reason the metals should see a major rally. The simple fact until proven otherwise — rallies are meant to be sold.
The facts are simple, the metals are headed lower and have met most of our downside objectives. After trading $1,460 last week based on December futures, we now have lower targets at $1,440 and $1,400. The metals should consolidate at these levels before taking the next leg lower.
The footprints are clear that the trend is lower, the news and opinions are worthless. The metals are heading lower and should reach our downside targets before turning around. We expect a couple of big selloffs, but the ending will probably come off of a panic bottom which we have yet to see.