Gold and silver and decision point
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are at the moment of truth; both metals are testing key support: gold at $1,440 December futures, silver at $16.80. The bottom pickers are out in full force and looking for a reason to buy. They are making comparisons to every reason to buy in history.
From the Fibonacci retracement for gold prices, the rally since the 1929 depression, you name it Gold buyers want in. First, we must remember that gold is NOT a hedge against the equity market, it is a hard asset. Everyone should have some exposure to metals but not as a hedge and not trying to pick the bottom.
The one key element in all markets is price. Markets are very simple: price determines price and the market footprints determine tops and bottoms. Right now, price suggests the markets are going lower and if they fail at these levels it could get a lot uglier. We remain short and will not adjust until price tells us to.