Gold Fails To Build On Tuesday's Rally
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Gold failed to follow through on Tuesday's big rally, at thesame time making a lower high, indicating that there is more room on thedownside. The resignation of White House economic adviser Gary Cohn helped goldrally on Tuesday night, but the metal has sold off since.
After making a double top in mid-February, gold has workedits way lower and is poised to test the $1,300 support level. News that shoulddrive the price of gold higher has not done so, which is just anotherindication of the underlying struggles.
The suppression of the dollar by the Fed and central banksaround the world should be buoying the price of gold but it's not. Our view isthe dollar is about to break out to the upside, which will add more pressure toan already weak metals market.
We are long-term goldbulls but have too many concerns at the levels that both gold and silver aretrading. This is a time to observe the markets and wait for clues on direction.Let the bulls and bears battle in this congestion range, which is filled withuncertainty.
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.