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Contributed Commentaries

Spy to continue fly as Gold sets up for the all time high?

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

Wednesday, I suggested gold was looking ripe for a correction and that stocks were likely on a path higher. Although stocks have, in fact, outperformed gold since the FOMC (and all week), the gold price hasn’t really come down; in fact, it now looks like gold is consolidating via time rather than price volatility.

The current sideways action in gold is very bullish for a run back to all-time highs at $2070 spot, in my opinion. Below is a zoomed-out daily chart with yellow boxes highlighting prior recent time periods wherein gold consolidated in a similar fashion.

The 4-hour chart shows the current sideways/upward consolidation more closely; it seems to me that sellers are getting tired…

Monday, I suggested a target for stocks at the top trendline; that target was obliterated, quickly. I also questioned whether this would be the rally to finally break out of the larger downtrend of lower highs and lower lows going back to July - As of now, I have no reason to believe this rally isn’t it; Price looks set for a test of the top Bollinger band in my opinion.

Thanks and have a great weekend.

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.