New Month, New Quarter; What's New For Gold?
Gold has been consolidating formonths. In fact, the entire first quarter was traded in a big range. Gold neverbroke out to the upside or broke out to the downside. There have been manyfalse starts in both directions, but each time, gold came to that key moment itreversed and went the other way.
There is no end in sight for thiswide consolidation pattern, but it will break out one way or the other; theonly question is when. For now, the trade is to sell the top end of the rangeand buy the bottom end. That trade will work until it doesn't. Market patternsrepeat themselves over and over again, looking for a reason to break out eitherway.
The economy and the dollar willbe contributing factors to which way these markets will break out. We expect amuch stronger dollar, which typically would be bearish for gold. However if thedollar becomes the black-swan event, we expect it could be positive for gold.This is why the metals remain in consolidation, searching for a reason to breakout. Let the footprints be your guide and wait for the breakout in eitherdirection.
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.