Make Kitco Your Homepage

Contributed Commentaries

Metals under pressure - what now?

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

Gold bulls are thus far failing to hold the $1650 mark, but they have not let bears completely run amok over price, as the September FOMC low remains intact.

However, what bulls need to see is for the price to perk back up over $1650. Even more importantly, $1685 needs to hold, at a minimum, for an extended move to $1705, ideally as Stochastic RSI stays overbought. The timeframe from mid-August to late September is the exact opposite of what gold bulls want. Note how the price failed to break over the 50-day moving average just as stochastic RSI exhausted, then stayed oversold as the price turned back into the downward trend. A breach of the September low opens the door to the 15-handle.

All of the above said: A zoomed-in view of price action every day can blur long-term perspectives, which is why it is important to keep the wide-scoping fundamental economic backdrop in mind when owning precious metals for the long, long run.

Thanks and have a nice 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.