Pressure On Gold Is Mounting
Gold has come under pressure thelast few days, but from a long-term perspective, the pattern has held up andall signs point to higher prices. We can look at the trade in gold a couple ofways -- we can panic because it's down 2% from its recent highs or rejoice thatit's still 5% higher than the lows.
In other words, is the glass halfempty or half full? We will choose to look at the glass half full. There is noreason for panic as gold surfs around the lower end of the most recentcongestion pattern; the action is bullish.
The bears can look for reasonswhy gold should go lower. If this is the best they can do, they are in trouble.Gold should bounce from the $1,210-$1,220 level and break out above the $1,240level. Remember, when sellers can't break it down, there is a rally coming, andthat's what we have here.
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.  |