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Gold soars; silver shows weakness

Commentaries & Views

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.

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.