Moment Of Truth For The Metals
The metals have been on a wildride, trading as low as $1,238 on Dec. 12 and as high as $1,365 this morning.What's next for the metals? What has caused the biggest move in a year?
Once again, the metals have reachedthat do-or-die moment. They are trading near resistance that goes as far backas September of 2013. Will they continue to break out? Will the resistancelevel hold?
The big rally has been on decentvolume -- not great, but better than the last few years. You might say theweakness in the dollar is causing the metals to rally with the dollar at three-yearlows. However, the dollar has been torched for the last three years and gold isbasically in the same trading range for the last five years.
Although we are in theobservation mode, we will watch to see if gold can close over $1,365-$1,375;failure here should lead to some profit taking. As we said months ago, the bearmarket in gold was over, but we would expect to see some profit taking here ifgold fails to take out the highs.
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