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Gold fails key test; looks bad

Commentaries & Views

Gold and silver met their moment of truth on Monday and they failed miserably. Both have reversed and look to be headed lower. The patterns have broken down making the metals a more attractive sale then a buy at this point.

If you remember that the key to any market is the price action and the footprints they leave, its obvious the metals have reversed and will now test lower levels. There is overhead resistance in gold at $1,495 and silver at $17.50.

We are now on the short side of both markets and are looking for a test of $1,440 gold, $16.70 silver. The metals markets have turned negative, we will be sellers at resistance levels. The bottom line is simple, the metals look lower until this new pattern changes.

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