Gold: Is this the bottom?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.