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Gold and silver new direction or trap

Commentaries & Views

Gold and silver have ben showing some strengths this week with some positive trading action with indications that the bottoms could be in. However, Wednesday’s action in the metals was more bearish, indicating that this recent trade is still bearish.

Markets take many turns throughout the different patterns, and many of them are false. We could be witnessing a false move now as we watch the possible fake out of the bottoms being in. Tuesday and Wednesday’s trading action was weak, indicating that we are seeing a false read and the trend remains lower.

One thing about trading we must always remember, throughout all of the market gyrations, the longer-term trend trumps everything until it changes. Early in the week it appeared that the trend was changing however for now we are short and have no intentions of reversing until there is proof that the lows are in.

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.

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