Is Gold In Trouble?
Is Gold in trouble? The shortanswer is yes. Gold has been tumbling for the last couple of days as themarkets starts to sell off. With the equities getting clobbered overnight thelast three sessions, gold has not been the safety asset that many believe itis.
The lack of volatility inequities is helping to keep the pressure on the metals. We are not from theschool that gold is a safe-haven play but just another hard-asset commoditythat is now under pressure.
Gold appears to be breaking downand has now brought $1,240 or lower back into play. We are not sellers althoughwe see lower prices in the short run, but we are not buyers either. The tradingaction is bearish, which is keeping us on the sidelines and looking for an opportunityto buy. The lack of any reaction to the trade war and uncertainty is a concernand will keep us on the observation deck.
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.