Gold and silver Consolidating
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.