The following comments were sent to Myra P. Saefong, Financial Writer for Marketwatch.com, at 8:00 AM EST.
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One thing that I'm seeing in a variety of markets (Stocks, metals, currencies, bonds) is higher volatility but little headway being made in either direction. The recent ranges have widened but the markets themselves are really just treading water. I'd feel a lot better if things were quiet for a period because that's usually a great indication that a breakout is ready to occur. But as it stands now, we could be going nowhere fast for the forseeable future and the metals complex could see the frustration level of the long-term players rise dramatically over the weeks to come. Gold's $40 range between $540 and $580 may be tough to break anytime soon. The range is just wide enough to put the market in oversold territory at the bottom and overbought at the top. So, I believe it's going to take some kind of extraordinary event to move this market out of it's "comfort zone". What could cause such a reaction? That's the $64,000 question. There are so many potential catalysts out there. That's why I keep recommending that any significant dip be bought in any of the metals because the potential for a move through resistance is so high considering the global tension that currently exists.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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