After getting over $1,900 an ounce gold suffered a quick reversal. I still think the precious metals will move higher in the future, but I feel it is prudent to step aside for the moment.
The market is much confused at the moment. It is searching for direction and there is no consensus on whether the market should rise or fall. All asset classes are being affected, include most of what we own. Stocks are very oversold and a bounce is warranted, but the intra-day moves are absolutely unpredictable, making it hard to commit money.
This type of volatility is generally not a good sign. While the opportunities might very well exist, the risk levels are off the charts.
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