Gold should rally to 1820 before failure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Friday, gold made a new eight-month low and is bouncing this morning. This rally is normal and natural from a new low. The odds favor that this rally is just another selling opportunity and should continue to make lows. We are looking to add to our short positions at $1,820 April Gold.
Silver remains steady, which is higher this morning. The critical levels in silver have not changed; the trend is higher. The key support and resistance levels are $26 support, $30 resistance based on May futures. With the Gold/Silver ratio continuing to collapse, silver has a big opportunity to take off to the upside.
The action is spectacular in platinum; after making a seven-year high last week, the retracement is perfect. Support in platinum is about $1220 based in April Futures. We would be willing to add to our current long positions at support.
Remember, these are my opinions based on the current positions and direction of the algorithm. We are always watching the trend combined with the phases of the markets. To be clear, we long-term owners of gold, silver and platinum. For now, until our algorithm changes, we are short gold, long silver and platinum in our trading accounts.
On Saturday February 20th at Noon EST, we will be presenting our Equity Portfolio Management service using our proprietary algorithms. Below is the registration link
We have also included a registration link for session 6 on Friday February 19th at 5:00 EST