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Gold, silver headed lower

Commentaries & Views

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.

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.