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.