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Gold and silver back on support

Commentaries & Views

Wednesday saw gold and silver bounce after Monday’s big selloff. We expected a dead cat bounce, which is exactly what we got. This morning the metals have erased all of yesterdays gains and are in danger of breaking key support.

With gold and silver potentially ready to breakdown, is there any chance that they can rally from here? The simple answer is yes, they can rally; however, based on our work they are both ready to breakdown. If $17.50 in December silver and $1,480 in December gold futures doesn’t hold, much lower levels are coming.

We all know that markets never announce themselves and anything can happen from here, but probability and statistics lean to the selloff continuing. We are still sellers of rallies at key levels if there is a rally. This sell off brings $17.25 -$17.00 silver, $1,465-$1,460 gold into play. Metals should be headed lower 

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.