Gold soars; silver shows weakness
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Monday was a crazy day for gold, soaring overnight to $1,691 before settling the day at $1,661. We have written for weeks that the yellow metal was starting a bull market. Add some fear and you get an explosion. Of course, cooler heads prevailed. Gold was higher, but the crazy spike was over, with gold giving back 70% of its gains.
On the other hand, silver also spiked to six-month highs. The difference was silver failed miserably and printed lower prices on Monday before closing up with small gains. The recent strength will keep us long but with a watchful eye.
Markets that show weakness usually are weak; we can only account for silver’s ugly action on the blow-off high made overnight. Gold looks like there is a lot of room to run and should take out our next target of $1,700 in the April futures. The bull market has continued in gold; silver needs to hold $18.40-$18.50 in the March futures to join the party.