Metals down - but not out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After an impressive intraday reversal yesterday, gold has found resistance at around $1,925 this morning. The corresponding resistance for silver is $24.90 - $25.10. The bullish case would strengthen should gold close this week above $1,925, better- $1,935, and bulls are certainly giving themselves a chance.
That said, the expectation is that lower prices and a sideways churn lie ahead should the above-mentioned levels firm up as resistance.
With U.S. GDP data on deck this morning, some volatility should be expected. Perhaps today's print is the catalyst major U.S. indices are looking for to cool off their wild run from their winter low. Although the probability of a pullback in equities is mounting, traders should expect that a "V" recovery to all-time highs remains on the table.