Make Kitco Your Homepage

Gold: Is this the bottom?

Commentaries & Views

Gold has indeed followed the path of least resistance lower, breaking under $1,915 after having found support at the level for a few hours overnight; traders on the short side may want to take some profit. $1,895 - $1,900 should serve as some support, as a round number; bulls may get a bounce back to $1,925. However, the gold to silver ratio has broken out to the upside on a weekly basis, and likely has room to get to 85.

Thanks and have a great week.

Stocks are opening lower again this morning but still have yet to challenge the winter bottom with sentiment even more bearish than it was at the beginning of last week. Traders who positioned themselves on the long side of equity indices are well exposed to a whipsaw -- selling a long position on an undercut of the recent low as part of a washout before a move up can begin. With support at the trendline shown below and momentum deeply oversold on the daily time frame, contrarian traders may see an undercut as a yet another buying opportunity for a short-term rally at the least.

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.