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Gold and silver resume downtrend

Commentaries & Views

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.

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.