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Gold And Silver Can't Find A Bid

Commentaries & Views

The precious metals continue to take it on the chin as every rally is met with sellers. Gold appears to be headed for our next target at $1,240 and silver looks like it will test $14.00. The pressure is mounting as the metal’s markets see the weak hands cave in almost daily.

When watching patterns like we are seeing in gold and silver, we know one thing: a deadcat bounce is coming. We must remember that markets don’t go straight in one direction and major sell offs are always met with some vicious rallies.

We don’t predict daily moves or gyrations but today could turn out to be that bear market rally. At 2:00 EDT the FOMC minutes are released and could have a big effect on the metals. This news could be just the ticket to create a short covering rally. We will be looking to sell that rally at the right levels which are $1,290 for gold and $14.70 for silver. Until further notice the sellers are in control.

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.