Gold Better Hold
The torture of a consolidatingmarket is playing out as scripted in the metals. Gold and silver held the lows,rallied to the top of the range and once again are failing today.
With gold now hovering around the$1,200 level, it could go either way from here. The level to watch on thedownside has moved up to $1,190 and a close below that could cause issues.
We expect gold and silver to holdthe recent lows and move higher. The charts look healthier than they have inmonths and given our choice would love to see this consolidation patterncontinue for a few more weeks as the metals build a base. Typically, the longerthe phase of consolidation -- which is usually the birth of a new market -- themore bullish we would be. For now, it's patience and observation.
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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.