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Gold Can't Hold $1,300; Silver On Death Watch

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As expected, gold failed to hold the $1,300 level and closed Tuesday at $1,296. Gold continues to trade in a range with a bias to the downside. Until gold can close above $1,300 and then $1,310 for a couple of days, rallies are meant to be sold.

Silver continues to trade as if it were in a coma searching for a lifeline to bring in new money buyers. There appears to be help on the way if silver can hold the $14.50 level. The slow dull drift has been painful with the lack of volume and movement.

Since making yearly highs in February, gold and silver have traded lower. Gold is down 6% and silver 8% since the recent highs and other than a couple of burst or short covering rallies, they look to be headed lower.

This is the period when you decide whether you are a trader or investor; traders will continue to sell rallies until further notice. Investors should turn those machines off knowing that they will find a bottom and eventually go higher. For investors, the worst trade is to try and time the market.

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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