Contributed Commentaries
Gold over $1965, now what?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After a brief stall at $1,965, gold came down to touch $1,950 yesterday intraday before finally breaking through the level last night.
The metal is now testing resistance at $1,980, but bulls have a congestion area between $1,980 and $2,000 to look forward to.
The gold/silver ratio is falling in tandem with the move in metals. A further drop to the 76.2 level looks probable from its current reading of 77.1.
Stocks continue to consolidate within a wedge that has become much clearer (shown below). The winter lows are yet unchallenged despite the hawkish talk from the fed, which is clearly having its effect on skyrocketing US treasury yields.
This indicates that equities may once again be engaged in the process of adjusting to a higher rate environment; the market may be "looking for" a catalyst to breakout.
How sustainable is the parabolic move in the U.S. 10-year yield?
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