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Commentaries & Views

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.

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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