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Gold and silver having a weak rally

Commentaries & Views

After getting pounded four of the last five days, gold and silver are having a weak rally this morning. Other than a dead cat bounce, we see no reason the metals should see a major rally. The simple fact until proven otherwise — rallies are meant to be sold.

The facts are simple, the metals are headed lower and have met most of our downside objectives. After trading $1,460 last week based on December futures, we now have lower targets at $1,440 and $1,400. The metals should consolidate at these levels before taking the next leg lower.

The footprints are clear that the trend is lower, the news and opinions are worthless. The metals are heading lower and should reach our downside targets before turning around. We expect a couple of big selloffs, but the ending will probably come off of a panic bottom which we have yet to see.

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.