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The Pressure Is On

Commentaries & Views

The roller-coaster ride for gold and silver continues. After last week’s big rally, this week’s sell-off has taken away most of those gains. The action, although painful, is no surprise based on the pattern that the metals are in.

Gold at $1,300 and silver at $16 are certainly in play here. The failure to take out the top end of the range brings pressure on the metals, increasing the odds that the bottom end of the range is in play.

The sudden burst of the U.S. dollar brings additional pressure to the metals, also bringing $1,240 into play. The metals are going to break out one way or the other and the longer they stay in these ranges, the bigger the breakout will be. Although we are long-term bullish, we are prepared for one last push to the downside.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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