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Gold and silver Consolidating

Commentaries & Views

As gold and silver prepare for their next move, they are in the consolidation phase. We have written many times before that this phase is the most challenging and creates the most uncertainty for traders and investors.

When the phase of consolidation ends the markets will breakout in one direction or the other. Typically, the breakout follows the prevailing trend, which in the metals is lower. With another close below $1,500 in December gold we are expecting a test of $1,460 and possibly $1,440.

Silver looks stronger than gold, but the key level is 18.00 in December futures. However, silver could breakdown as easy as gold which based on the action, we would expect lower prices. The bottom line is simple, until the price action and pattern tell us different, we are sellers of the metals.

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.