Is gold breaking out?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After stalling for weeks at resistance, gold appear to be breaking out to the upside this morning. As of this morning, gold is higher and trading at $1,489 based on the February futures. The big question here: will gold follow through to the upside?
Obviously, there is no automatic answer to that question, which is why we watch the levels and market footprints that are left by the price action. At the same time, silver is breaking out and could be ready to run higher. Is it time to buy the metals?
Many will chase price this morning on the fear that they will miss the next big rally also known as FOMO. We are ready to reverse and get long; however, we will not be buying until tomorrow at the earliest. For us to turn bullish, gold must close over $1,490 based on the February futures and silver over $17.50 in the March futures. Although we can see the case to buy, we will be patient enough to wait for our levels.