Did Gold Bottom On News From China?
(Kitco News)- Over the weekend, the big newswas the possible deal made with China and the United States on the trade warsand tariffs. Sunday night on the initial opening of the markets, gold hoveredaround the unchanged line before selling off and testing very near our $1,280target, trading at $1,281.20.
Gold held that low and we wouldconsider that close enough to our target. We are now looking to be buyers. Although$1,280 could still play as well as $1,260, the worst of the selling should beover. We are now buyers on dips and would look to build a long position.
The gold/silver ratio continuesto fall; this was 83 and is now down to 78 on its way down. Although we thinkgold has bottomed or is very near, we still like the trade of selling gold andbuying silver. In any case, the metals in general have bottomed in our opinionand the question is how big the rally will be.
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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.