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All That’s Gold May Not Glitter


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All That’s Gold May Not Glitter

Todd 'Bubba' Horwitz
Wednesday May 10, 2017 07:56
Kitco Commentaries | Opinions, Ideas and Markets Talk

Editor's Note: Veteran trader Todd "Bubba" Horwitz will be bringing his insights and tell-it-like it is attitude to Kitco News every morning as part of a guest series on kitco.com. Wake up to Bubba and get what you need for your metal mornings!

(Kitco News) - Gold continues to be under pressure although higher this morning trading at 1223, just off lows not seen since early March. Interestingly enough the U.S. Dollar has fallen during that same period. Apparently, there is no fear anywhere in the world. The VIX is at 11-year lows and equity traders believe that this time is different and markets will never go down again.

Although gold traded to 1214 on Tuesday the key area looks to be 1225 if it continues to fail there, a break below 1200 is in play. This latest move in gold proves how complacent markets are recklessly selling gold. The shorts will once again pay the price; they will pay now or later.

Silver can’t find a bid and is threatening 6-month lows, another sign of illogical trading. Silver has given back all its gains and is down about 13% from the highs. Another example of relentless selling setting up a big up move soon.

The risk/reward in the metals is at ridiculous levels and as always, the aggressive selling will be met with a short covering as traders are pricing in a rate hike at the next FOMC meeting. Look for the usual ending: this Fed selling will be followed by a reversal.

By Todd 'Bubba' Horwitz
Contributing to kitco.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 precious metal products, 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.