Gold, Silver - Breakdown Or Bottom?
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It appears that gold and silver are now at the moment of truth -- are they breaking down or making a bottom? Of course, that question is impossible to answer today, based on the current information at hand. A case can be made for both, which is why traders and investors can get into trouble here.
There are times in every market that sometimes the best trade is the one you don’t make. A trade here is the wishing and hoping or “I’m smarter than the market trade.” The next move is a coin flip, and the best trade here is to observe.
Gold and silver were both on the verge of breakdowns on Tuesday before coming off the bottoms, closing lower on the day but well off the lows. Gold traded as low as $1,268 and silver $14.70. The current action suggests breakdown, but the footprint is not definitive yet. Just remember that “it’s better to wish you were in a trade then to wish you weren’t.”