Key Reversal In Gold; What's next
A funny thing happened on the wayto new highs. On Thursday, gold looked like it was going to break out theupside and take out the highs on its way to $1,400. Suddenly without warning,the markets reversed and went from up $8 to down $14. This is known as a keyreversal, which is an indication that the top of this move is in.
With the dollar crashing,equities going parabolic for some reason at 1:16 p.m. EST on Thursday, golddecided that the move was over. The move lasted just over an hour, taking themetal from highs to lows. Although gold is showing lower on the board, it'srallying this morning; $1,360 is the level to watch.
Once again, the near-term topappears to be in, the dollar looks like it bottomed and the commercials areholding a record short position. Markets never announce themselves, but they dosend messages, and the message here is a pullback has a higher probability thana continuation of the rally.
Contributing tokitco.com
Follow @Bubba_Trading
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.