After peaking last Wednesday, Gold has been under pressure and the weak hands are starting to panic. Many had more angst thinking I didn’t write my commentary on Friday which loaded my inbox with panic emails. The bottom line, nothing has changed in the gold market, the sell off is perfectly natural and actually expected.
For weeks we have talked about the 1500 level in December futures and will be buyers at those levels. From a technical view, nothing has changed, 1600 remains our next target. Silver is a little more concerning, however Monday’s action will determine if we will stay long.
The fundamentalists are out in force with their negative views on metals, talking trade wars and whatever message they want to send which is comical. Price determines the action and nothing else its that simple. Until this pattern changes, we are buyers and expecting the bull market to continue. After a 300.00 rally, a 50.00 sell off does nothing to change our opinion or the positions we own. Gold goes higher until the pattern and the technical change.