Gold and silver prepping for a big move
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The last five or six days have been a non-event for the metals. Every rally has been met with sellers and every sell off allowed buyers to come in. In the meantime, they have gone nowhere which suggests a much bigger move coming.
As we evaluate the recent market action the default action should be to the downside. It’s obvious that a move is coming, bulls will reason that the economy is in trouble, interest rates are falling and they’re wishing the metals higher.
The bears will make the case that the recent footprint shows a downtrend and the selling at resistance is expected. The assumption that all of the news that the bulls are suggesting for the reasons to go higher have been priced in well in advance of the current move.
The bottom line, as long as gold stays below $1,520 and silver below $18.00, the path of least resistance is lower. We are short and sellers, until the metals can close above the resistance levels. It’s that simple