Gold Getting Ready To Break Out
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The ranges in gold and silver are narrowing, which tells us they are getting ready to break out of the trading ranges they have been in. The levels have changed from $1,280-$1,320 for gold to $1,290-$1,310. The tightening of the range tells us there is a move coming.
Based on the current action, although we know a move is coming, there is no way to determine the direction of the next move. We will continue to observe the action and let the markets tell us what their intentions are.
Although we lean to the long side as an investor, short-term algorithms still indicate the move should be down. The conundrum for investors is do they get out and try to time the market or stand pat knowing the metals will move higher.
For now, the metals market is a trader’s market, and investors should sit back relax and observe. We are bullish long term and will hold longs while trading from the short side.