Gold Struggles; Silver Makes Another Low
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
If you want to know what ugly is, look at a chart of silver since the end of January. Silver continues to go down almost every day without even the occasional dead-cat bounce. Since hitting $16, silver has fallen; the pattern looks like we should be downhill skiing. Only the shorts are enjoying this run.
Gold has had a similar run to the downside but not as bad as silver. Gold should continue to work its way lower and for now there is no reason to buy. Gold looks headed to $1,240. There doesn’t appear to be any reprieve, although of course markets can change at any time. The odds favor the current trend, which is down. We see no reason to fight and will stay short.
We all know that markets don’t announce themselves but any sharp straight up move in the metals should be sold. The best action we can hope for now is the metals find a bottom, consolidate and start a slow uptrend. Until then, they are skiing down the slopes looking for a bottom.