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Gold holds while silver selling off

Commentaries & Views

Gold continues to hold the support level; each time is has sold off to support, new money buyers have come in and bought. Meanwhile, silver appears ready to break down. We are almost at the point of shorting silver and buying gold.

At this point, we would expect to be short silver and long gold. The next key level in March silver is $17.50. Gold continues to hold the $1,550 support level as witnessed through the last trading week. The levels in April gold are $1,550-$1,565 and March silver $17.50-$17.90.

Both gold and silver are at key levels and both could go either way; for now, it looks like higher gold and lower silver. The big issue here is the lack of volume in both metals. We are long gold but will reverse on the next down day below $1,550.

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.