Gold and silver resume downtrend
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Thursday the metals showed a little excitement and possible strength on the back of the Brexit deal. But as expected both failed at their respective resistance levels. Silver was getting close to $17.70 before falling and gold pushed to $1,501.
The precious metals are in an obvious downtrend and look prepared to take the next leg lower. Until proven otherwise gold and silver are headed lower, the next pause in this move should be $1,480 gold and $17.20 silver. Once those levels are violated the selling pressure should accelerate.
When playing the trend in any product the key is to let the markets playout until there is a reason to reverse. As long as gold and silver continue to make lower highs the trend is lower. Our first big targets are $1,460 gold and $17.00 Silver. There are lower targets that will come into play as this trend continues.