(Kitco News) – Gold is getting closer to our $1,280 target, making an overnight low of $1,284. It appears the sellers are running out of steam but should have one more burst to the downside. The $1,280 level should be a solid entry level with the possibility of going down to $1,260.
Since the highs of April 11, gold has dropped about 6% and is completing the downside move. Volume is starting to dry up and gold is in an extremely oversold condition. Rising interest rates and the strong dollar are the culprits, but those events have been priced in.
While gold is finishing its down move, silver prices have already found theirs. Silver should hold $16 and move higher and run to $17 as the first resistance. The long-term view for the metals is higher as they have made or are near the bottoms.
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