Equities in panic mode, gold selling off
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For the last few days, the markets have been selling off; this morning, they are in a panic mode. Over the last couple of weeks, the Nasdaq, Dow, and S&P 500 have fallen 7%. All the major indices are at a decision point: hold the bottom of support or breakdown.
At the same time, gold, silver and platinum continue in their downtrends and are reaching similar inflection points. Gold, silver and platinum have been in a downtrend for the last couple of months; this morning, gold and silver are at the same point of the indices. They will breakdown or rally.
We have been short since the downtrend began and will remain short. The $1,900 level in December gold is a must hold, or $1,860 comes into play. December Silver must hold $24.00 or $23.00 is in play and platinum, which has been the strongest of the group, must hold $860 January futures or $820 is in play.
The sell-off in metals has been steady without the same panic we have seen in the indices; however, either they hold here, or the panic will begin. One of the big issues contributing to the selling is the higher margins that were raised on Monday. At the same time, election fears have forced many of the weak hands out.