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Gold and silver – no change looking to breakout

Commentaries & Views

On Friday we talked about the potential of the metals to breakout in one direction or the other. The action was slow and choppy, which is continuing this morning. The conditions are extremely overbought which can lead the metals in either direction.

There is no question that gold and silver will breakout big, leaving the question which way and when? What we know for sure is gold and silver will make a big move. Although we remain short, the move could be higher the key will be the trading action from these levels.

There are a couple of things that can happen: the metals can consolidate at these levels before breaking higher; they can fall apart from here and resume the downtrend they were in before the recent action. There is only one way to know for sure, follow the footprint and be patient enough for the markets to tell you what the next move is.

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.