Melting Metal: Gold Starts To Tumble
Tim Knight | Aug 07, 2020 04:55PM ET
My recent obsession with precious metals has been getting some ribbing, but that’s OK. I think there’s no market more important to spelling out our financial future, and as I’ve said repeatedly, it’s the one asset whose ascent I applaud.
Paradoxically, I am quite pleased to see gold finally start to take a tumble.
It got very close to $2,090 an ounce and then did an about-face. I would say the first level of meaningful support is around $1,980, and a much, much more solid level of support is way down around $1,800.
Perhaps my lifelong fixation on being different from the crowd made me uneasy supporting an asset that had been garnering so much attention. But honestly, in spite of my long-term target of $6,400/ounce, there needs to be shake-outs and breathers along the way.
The old “Tim’s visits to the bullion shop fade indicator” doesn’t work any more. I’ve actually been doing quite well with my buys and sells. I sold some of my gold recently since I just had too damned much of the stuff, and I would be absolutely delighted to march right back in there and gobble up a bunch closer to $1,800.
In the meanwhile, I am cheerfully short XME (NYSE:XME), which I think could be one of the best ETF shorts for the rest of the year.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.