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Gold and silver running

Commentaries & Views

After last Tuesday’s fear blow-off to the upside with the immediate reversal, it looked like the tops were in for gold and silver. Suddenly the metals have found support and are holding at support and now look like they may have put in a bottom.

The blow-off pattern that looked like the metals had put in the highs is resolving itself through consolidation. There are many ways extreme patterns can resolve themselves. In this case with gold and silver, it appears that they are forming a higher low within an uptrend. We were looking for a reversal, which never came.

Although we were negative after that Tuesday blow-off, our algorithms never reversed. We waited and waited for the reversal to come and get short, but it never came. We are long and will stay there with a concerned eye on the pattern and the algorithm. One thing we know for sure -- never fight the pattern you have. Play the cards you are dealt, not the ones you want.

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.