Buy Silver, Sell Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Speculators appear to be buying silver, which tells us the bottoms could be in or near. The pattern itself looks lousy but if silver can hold the $14 to $14.35 level, that could be the case. The expansion of the gold /silver ratio to 89-1 is another sign of the market trying to reverse. If silver is going to rally, it will probably come from a short squeeze, which could be created because the speculators are buying.
Gold continues in a lethargic downtrend and is headed for $1,240 unless something major shifts the pattern. Gold continues to make lower highs, and new resistance is at $1,290. Until proven wrong, the play in gold is to sell rallies that reach resistance, which is $1,290-$1,300.
The answer to buy silver and sell gold is not easy but would probably work. However, from a straight technical look, the metals should be headed lower until further notice.