Gold Fails To Break Out; Let The Selling Begin
As a long-term gold and silver bull, it's always hard to write negatively about the metals, but being a markettechnician, I also must read the charts and follow the footprints they leave.The metals have had a great move higher and now look to have hit the pausebutton; they are ready to see some profit taking.
Investors in the metals should behappy about the next sell-off, which is really going to be a buyingopportunity, but a sell-off would be healthy. There are too many factorspushing the metals higher that are illogical, creating false optimism that willonly lead to disappointment.
The extraordinarily weak dollar,which does add fuel to buyers, is only down because the Fed and central banksare trying to suppress interest rates as those rates start to get away fromthem. The Fed over the years has never gotten the raising rates part of theequation, and rates should start to rise much more rapidly than expected, whichwill also propel the dollar higher, pressuring the metals. We are looking for atest of the lows to be buyers.
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