Gold Rush Is Over For Now
To quote the great Howard Cosell, “it’s over, it’s over,”and that’s what we think about this rally in the metals the last three weeks.To be clear, we are big fans of gold and silver and we are not liquidating ourinvestments, but from a trader’s standpoint, we are going to take a shortposition somewhere in this $1,315-$1,325 area.
Gold and silver look exhausted, as if they have just gone15 rounds with the Fed and simply need a rest. The metals are extremelyoverbought at these levels and Tuesday’s action, although higher once again,showed exhaustion as the market rallied late on virtually no volume.
The shorts have been squeezed out, new money is still goinginto equities, and the metals need a rest and will probably test the lows.Investors use the pullback to buy; traders look for a short-term level to selland capitalize from the next down move.
By Todd 'Bubba' HorwitzContributing 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.