Did Gold Find New Support?
On Monday, gold and silver bothhad nice rallies and the big question is: has gold found a new support level?The range since January in gold has been $1,300 to $1,365, and since the March21 rally, there appears to be a new support level at $1,330. In the last sevendays since breaking above $1,330, gold has held that level, narrowing the rangeand indicating there could be a breakout to the upside.
We are still playing the rangewith a new support level of $1,330. Until the breakout occurs, selling at$1,365 is the correct play. Consolidation can last for extended periods of timeas witnessed by the current range, which has lasted over three months.Eventually gold and silver will break out one way or the other, but for now theuncertainty keeps them both in a trading range.
Watch the dollar, interest ratesand the equity markets for clues. We expect the dollar to pop higher, whichcould create pressure on the metals. However, based on the way they have beentrading, it appears they have priced in a higher dollar within the tradingrange. The footprints will show the way; the key here is the patience to waitfor the guidance of the charts.
Keep those stops tight.
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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.