Gold, silver and platinum rally, can it hold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
This morning gold, silver and platinum are up nicely. The bigger question is: can the rally hold? That is an answer only fortune tellers, prophets and self-proclaimed gurus can give. From a basic technical view of the markets, my question about the rally, is that all?
Gold, which has been weak since the beginning of the year, is due for a rally based on the recent speed that took April futures to $1,673. Is it possible the bottoms are in? The simple answer is, could be. Looking at gold without opinion or emotion, a rally was coming without question. However, there is a high probability this is just another selling opportunity.
We all know that people who play the markets get far too emotional about certain products, gold being one of them. The trend is lower; there is massive resistance at $1,725 (we would sell more there). Until gold can sustain any positive momentum, it's going lower. It's that simple.
Although we are short all three, gold is the weakest, followed by silver, which has gained downside momentum. We are sellers of every rally that reaches one of our levels until the trend changes. Looking years down the road, the metals will be much higher, but here and now, sell until the trend changes.
On Saturday March 6, Andy Hecht and I hosted a webinar on our newest addition to our Technomental Commodity Report. Below is the recording.