Gold Is Getting Closer To A Solid Entry Point
(Kitco News)- Gold is getting closer to our $1,280 target, making anovernight low of $1,284. It appears the sellers are running out of steam butshould have one more burst to the downside. The $1,280 level should be a solidentry level with the possibility of going down to $1,260.
Since the highs of April 11, gold has dropped about 6% andis completing the downside move. Volume is starting to dry up and gold is in anextremely oversold condition. Rising interest rates and the strong dollar arethe culprits, but those events have been priced in.
While gold is finishing its down move, silver prices havealready found theirs. Silver should hold $16 and move higher and run to $17 asthe first resistance. The long-term view for the metals is higher as they havemade or are near the bottoms.
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