Gold All Dressed Up With No Place To Go
The misery of consolidation,false starts and lethargic trade. That would be the best way to describe whatis going on in the gold and silverr markets. Charles Dickens could write aboutgold and silver as the tale of two cities, as the gold-silver ratio continuesto expand.
The metals bulls will tell youthat prices can't go any lower but as we all know, they can. The bulls willtalk about the protection the metals offer and the hedge they offer to thedollar and equity portfolios.
The bears will tell you that themetals are breaking down and can only go lower, which they can. They will talkabout the failure to sustain any rally, ignoring the fact that the metals aremaking higher lows.
The funny thing is that both thebulls and the bears are right, which is what causes the misery of aconsolidating market. Consolidation will end and the metals will break out oneway or the other. The only question is when and which way.
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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.