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Gold and silver crush

Commentaries & Views

Wednesday was an ugly day for the metals; gold and silver got crushed. The big question we should have: was there any technical damage done to the charts. That question should be answered by the action and trade we see today.

Although the selling pressure was extreme, gold and silver found their way back to support. The bias in these markets is still to the upside, support levels remain the same. The overnight action did nothing to change the pattern as the trade was slow.

The positive side of the metals was the heavy volume on Wednesday, which indicates that the selling was more panic driven then a technical breakdown. The trade could be considered a blow off to the downside which could create a buying opportunity. As long as gold stays above $1,495 and silver above $17.50 we will be buyers. 

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.