Gold, silver headed lower
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver appear to be headed lower, and there doesn’t appear to be anything that will slow the metals from another trend reversal. All the wishing and praying won’t make them rally to last week’s highs.
The highs made last Tuesday night were made on a move that was based on panic, which is never the beginning of a move. Typically, blow-off tops or bottoms are the end of a move, not the beginning. Last Tuesday’s move looked like the end, which means gold is probably headed back to $1,500 and silver to $17.50, based on the futures markets.
Based on our algorithm, we are still long; however, we are very close to changing to the short side, based on Monday’s close. If the metals close lower today, we will reverse and get short, which the charts and the patterns are indicating. The next move of size should be lower.