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Gold and silver no changes

Commentaries & Views

Gold and silver showed a little resilience on Tuesday recovering losses after being down big earlier in the day. They are now in a consolidation pattern deciding on which way they will breakout on the next big move. They can go either way from here, but the odds suggest they will break to the downside once again.

When watching patterns develop, we are always watching the phases of the markets. The consolidation phase which are in once again suggest a move is setting up. Based on the facts we can see the information available the breakout should be to the downside.

At this point there is no reason to expect a rally, but that doesn’t mean there won’t be one; we are playing the probabilities, which suggest the metals are still headed lower. We will remain short and look to sell rallies until further notice. It’s that simple, if the probabilities shift, we will switch to the long side.

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.