Gold soft after back-to-back monster days
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Starting last Friday, the metals appeared to find bottoms and have worked their way higher over the last couple of days. Gold exploded on Monday and Tuesday, forcing us to reverse our position and buy. This morning, the rally has slowed, which is logical based on the parabolic move over the last two days.
Silver and platinum continue higher this morning, while gold is lower. From a technical perspective, if gold is going higher from here, a period of consolidation should happen over the next few days. Although we have reversed in all metals, gold looks the strongest and has the best chance to continue the rally.
Platinum and silver are both reaching resistance levels at which both can break out, but the rallies should slow. Although all have turned bullish and could continue to rally, gold appears to have the best chance to make a big run to the upside. There are many factors in play with the metals. As fast as they rallied, they could fall. We are passively long at these levels.