Gold Oversold And In Danger Of Breaking Down
(Kitco News)- Gold is lower again this morningand last week's rally to $1,340 is a distant memory. The only thing that canhelp gold here is the oversold conditions and a dead-cat bounce. The pattern ingold is ugly, making lower highs and lower lows. Now, $1,300 is the key levelthat gold must hold or $1,240 is in the cards.
There are so many things that arein play here when it comes to the metals. The dollar is gaining strength, thecommercials have one of their biggest short positions and the pressure ismounting. Momentum is certainly to the downside
This action is a creation of theFed and central banks around the globe as they continue to manipulate interestrates and the U.S. dollar. This manipulation is the only thing holding gold atthese levels. We expect the Fed to lose control of the dollar, which should putpressure on gold. For now, watch the $1,300 level. If that fails, $1,240 iscoming.
By Todd 'Bubba' HorwitzContributing tokitco.com
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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.