A Weak Rally For Gold
Yesterday we wrote that gold hashad trouble holding a rally and Tuesday proved our point. Although gold ralliedabout $6, the rally was weak and not convincing. If gold was strong, the rallyshould have been stronger, but all it really did was hover around the bottomend of the range.
With all of the turmoil and theequities experiencing a turnaround Tuesday, I would have expected a betterrally out of gold. However, on the positive side, gold could be making arounding bottom from the lower end of the range and may have put the lows in.
It's not a final score and thereare still concerns about gold, but there is some positive price action, givinghope that the bottoms may be in. We are still observing, we are still cautious,but if gold can hold for the next few days at these levels, we will considerthe metal to be at a near-term bottom.
Keep those stops tight.
Contributing tokitco.com
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