Make Kitco Your Homepage

Metals turning the corner?

Commentaries & Views

In this trader’s opinion, the weight of evidence is strong that metals either have, or are very close to beginning a sustained counter move to the relentless downside action. An obvious catalyst for volatility is next week’s FOMC rate hike decision; traders may expect either a difficult bottoming process whereby lows are retested or perhaps even undercut, or, a complete rocket shot move higher leaving bulls on the chase (is the rubber band stretched too far to the downside ready to snap back)?

Below are gold and silver charts on the daily timeframe. The 50 day moving averages coincide with down sloping trendlines from the metals’ prior highs. This might be the target for short term swing traders or speculators to look out for on the upside.

A close above $1,735 in gold and $19.10 in silver today would be a short-term bullish signal.

Thanks and have a great weekend.

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.