Gold and silver lower on trade news
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Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are lower this morning; many will look for a reason. There will be talk that the fear that drove prices higher has now been resolved. Overnight there was an agreement between the U.S. and China to meet in October.
We have written for days that metals should go into a consolidation pattern which is exactly what they are doing. Silver which has exploded higher should sell off and churn as it rebuilds strength for another move higher. Gold has been in consolidation for the past week with a couple of failed attempts to breakout to the upside.
The patterns in both are clear, trade talks or no trade talks. Gold and silver should continue to rise once this pattern resolves itself. All markets leave footprints which allow the patterns to develop. The metals are in a bull market and should continue higher trade talks have no bearing on what these markets do. If you try and trade the news you lose.