Help Me Make Up My Mind
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For the last couple of weeks, we have written about the torture of consolidating markets. Monday proved once again how challenging they are. After rallying early to $1,353, gold spent the rest of the day giving back gains and although it closed higher on the day, gold looked weak.
Silver is in the same boat as gold; every rally is met by sellers. There is a unique pattern developing in the metals. Although they have been unable to break out to the upside, the fact that they are making higher lows and narrowing the range sets the metals up for a big move.
Based on the higher lows and the ascending pattern, the big move should be up. However, in this pattern, failure to take out the top could lead to a big fall, which brings us back to the torture of consolidation. We are observing the metals and waiting for a solid footprint before making our next move.
Keep those stops tight.