Gold's search for a bottom
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.