Gold trying to figure out next move
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After last Tuesday’s explosion higher in gold and silver, which was immediately followed by a huge sell-off, the metals have been trying to decide where they will go next. They haven’t violated the sell point yet, leaving us still sitting on the long side of the market.
The high print in futures of $1,613 is now far away as the metals float around a major support level. Over the past few days, the metals have been below support intraday but have managed to close above by the end of the day. This action is creating confusion, leaving the metals in a congestion pattern.
Although we are long and will stay there until our algorithm turns short, looking at the charts leads us to believe the highs are in for now. A test of $1,500 April futures in gold and $17.80 March silver futures is expected. We are very close to switching to the short side of the market.