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Gold holds $1900 : Is the bounce next?

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

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.

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.