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Gold holds support as silver searches for bottom

Commentaries & Views

Gold and silver are working in opposite directions. After Tuesday’s sell-off, gold is finding support. At the same time, silver is desperately searching for a bottom. Both metals appear to be in a little trouble here, but silver is very weak and, in our opinion, has become a short.

As of this morning, we are long gold, short silver and looking for the current patterns to continue. The patterns are clear for now as there appears to be no interest in silver as it continues to break support levels. Gold has held the major levels and looks to be in position to test the recent highs.

There is always a possible issue that can arise that could disrupt these patterns. Today at 2 p.m. EST, the Fed reports a decision on interest rates, which should be a big nothing. However, the Street will be dissecting every word looking for clues. For now, we expect the status quo.

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