Gold's Next Stop: $1,300
Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.
For the last couple of weeks, wehave written about the struggles of gold and thought our read was wrong whengold popped to $1,365 before failing. Tuesday showed more of that failure;equities melted down, as did gold. There is a lot of pressure on gold and thatonly figures to get worse as it approaches $1,300.
After three days of rallying,equities found themselves under pressure and the question is what doesTuesday's sell-off mean? The answer is simple. If there is follow-through tothe downside, the tops are in, and if they rally, new highs are on the way.
We believe the black-swan eventis the Fed and its clueless monetary policy. The Fed is losing control of thebond market and shortly will lose its last ace, which is the weaker dollar. Thedollar looks ready to explode, which should keep the pressure on gold. Nextstop: $1,300
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.