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Tuesday's Rally Not Enough

Commentaries & Views

With all the panic in equities Tuesday, the metals did not rally enough, indicating that they are headed lower. Goldlooks to be headed for $1,300 and silver $16.40, where they should find some support.

The metals markets look weak, especially when looking at the troubles equities are having. The action should have created more upward momentum in the metals, but it did not. This suggests that the top end of consolidation is going to hold, and we should now see a retest of the bottom end.

The big difference between silver and gold is silver has broken out to the upside and is selling off to support, while gold has been unable to break out, staying range-bound between $1,300 and $1,365. This is great action for short-gold, long-silver trade.

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.