Gold Headed Lower
(Kitco News)- Last week's rally in goldwas merely a dead-cat bounce and shows underlying weakness in the metal. Thetrend is lower, and gold has broken to the downside. Traders can sell ralliesuntil gold can close above $1,330.
The breakdown through thebottom of consolidation indicates gold has some work to do to the downside. Weexpect a run down to the $1,280 level before there is any sustainable rally.Investors should not worry about daily movement; we are long-term bulls and expectmuch higher prices when this sell-off resolves itself.
Traders trade on differenttime frames - with investors in for the long haul -- and the two should nevermeet. Investors should not worry about daily movement or try to time themarkets. Traders are looking for profits based on technical analysis, whileinvestors look at market fundamentals.
Combining trading andinvesting into one is a recipe for disaster. If you are buying for a long-terminvestment, ignore the daily movement. If you are trading, take profits whenyou can and be disciplined enough to take the losses when the pattern changes.
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Bubba@bubbatrading.com www.bubbatrading.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.