Gold, Silver Prices Going Nowhere
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Once again gold and silver seem in a hurry to go nowhere. They are both continuing their rotations before they head lower to their ultimate support levels, which are $1,280 in gold and $14.60 in silver.
Notice how fast the markets can change. Just a few weeks ago, the metals were on the verge of breaking out to the upside. Here they are now hanging on for dear life without collapsing. This is the area where most traders and investors get fooled and usually trapped in a bad position.
Investors should not be concerned. You bought the metals as a long-term investment and history tells us they will rally again and increase in value over time. It’s the traders who get themselves into trouble here trying to guess the next move without simply watching the market footprint.
The metals could have a bounce in the next day or two, especially with the jobs release on Friday. However, we expect a test of the lows before there is any meaningful rally. The best trade here is the one of patience.