Make Kitco Your Homepage

Is gold breaking out?

Commentaries & Views

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.