Gold holds $1900 : Is the bounce next?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold is finding support at $1,900, as suggested was the probability yesterday morning. It is likely that a bounce to the $1,920 area will also materialize. However, should $1,895 break to the downside, $1,870 would quickly come into play.
The below chart shows the gold/silver ratio on the daily timeframe. A short-term bounce in metals would likely coincide with a consolidation in the ratio above the breakout line.
US indices are pointing to a relatively flat open today, after the bounce off the support line we indicated yesterday morning. However, it is likely that a very short-term consolidation pattern will form leading into next week’s FOMC meeting.
Thanks and have a great day.