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Contributed Commentaries

Metals down - but not out

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

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.

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.