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Gold, silver take off; could it be a jailbreak?

Commentaries & Views

For weeks, the metals have been showing bullish signs of breaking out to the upside. On Tuesday, we reversed our silver position from short to long as silver broke out and became a buy. We are now long silver, looking for the trend to continue and will stay long as long as March silver holds above $17.30.

Gold had been showing bullish signs the last couple of weeks but continued to fail at key levels. That ended on Tuesday as gold broke out and reversed from short to long. We are now long gold and silver, expecting the markets to test higher levels.

One thing about being a mechanical trend trader is the simplicity of not trying to guess news and how it will affect the pattern and direction. After being short for an extended period, we are now long gold and silver and looking for a test of the highs. One thing to remember -- for now, we are long, but if something changes, we will not be afraid to reverse.

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.