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Gold's search for a bottom

Commentaries & Views

Gold bugs continue to call fix and manipulation on gold and silver as prices continue to get hammered. Out of all asset classes in the world, the metals cause the most emotional swings. For some reason, they believe the metals can or should never go down.

We all must remember that all markets are the same and that all patterns repeat themselves, repeatedly in all time frames. No market is immune to monster rallies or selloffs; it is a fact of life. Trends exist across all markets and gold and silver are no different. Their values are determined by price discovery. Manipulated or not, a buyer and seller still must meet.

After Tuesday’s action, gold looks much closer to bottoming. We won’t predict a bottom; we are short and will stay there until the pattern changes. However, there was some price action that suggests the bottom is close, or a much bigger selloff is coming.

Like all markets, we will stay with our current position until the pattern and the price action tell us differently. Keep your emotions in check and opinions out if you really want to make money trading markets.

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.