The Price of Gold's Yo-Yo Effect

London (Oct 2)  Around the world, walk the dog and shoot the moon are all yo-yo tricks; trading gold the past few months has had the same effect. We are experiencing the yo-yo effect -- a lot of tricks that have gone nowhere.

The real trick in markets like this is to learn the sleeping baby and the patience to watch, waiting for an opportunity to participate. All markets, no matter what the product, go through these phases. Gold right now is in the consolidation phase.

All new markets are born from consolidation, and a big move is brewing in gold. The move can go either way but based on the levels gold is at and the recent breakout in silver, indications are the next big move will be up. The risk-reward also favors the upside. When the next breakout occurs, we expect gold to shoot the moon.

KitcoNews