A tale of two metals: gold consolidates, silver trades inside
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
It was the worst of times; it was the best of times as the metals churn and torture traders and investors. Gold is now stuck in a range between $1,495 -$1,520; every rally is met with sellers and every sell off is met with buyers. In other words, gold is in consolidation looking to breakout in one direction or the other.
On the other side is silver, which broke hard falling over 10% in the last 10 days. After Thursday’s blow off to the downside, silver is now trading inside Thursday’s sell off which is also known as inside days.
Both metals are at key decision points as to whether they will breakout to the upside or breakdown to new near-term lows. The current conditions tell us nothing except that there is a move coming. The footprints being seen here is that of confusion. Like all patterns Silver and Gold will resolve this pattern, based on the prevailing pattern the next move should be higher but the best trade here may be the one of observation.