May Day, May Day -- Look Out Below
Today is the first day of May andthe new month is not helping the metals, which struggled through the month ofApril. Gold has lost about 4% from the highs in early April, with threeconsecutive ugly down weeks. The recent action brings a possible ugly run intothe mix.
Gold is now breaking down throughmajor support and failure here brings the possibility of much lower prices.This week brings a ton of data that can have a dramatic effect on the metals --the Fed on Wednesday and jobs on Friday. Either or both could bring the metalsto their knees or breathe new life into them.
Many are blaming rates and thestrong U.S. dollar on the recent decline in metals, which in our opinion is notthe case. The strong Fed-manipulated currency has not affected any otherdollar-denominated currency, meaning that at this point the metals are weak andmust attract some new money buyers or it will be headed to $1,280.
Keep those stops tight.
Contributing 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.