There Is No Bottom In Gold
Gold appears to be in abottomless pit of selling, and there are no buyers to be found. Even with theequity markets getting pounded on Monday, there were no bids for gold. Eitherinvestors feel there is no need for a safety play or the shine has worn off ingold.
Since June 15, just when itlooked safe to jump into the gold waters, the market collapsed and continues tofall. Apparently, there is no interest in gold and the sellers are running allover it, suffocating every rally while pounding the gold bulls.
This is a common pattern in anymarket -- sell first and ask questions later. Although we are not buyers untilat least $1,240, it would be no surprise to see a dead-cat bounce short squeezeany day to shake out the weak shorts. The best trade here is to observe.
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.