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Gold, silver track their current patterns

Commentaries & Views

Interestingly enough, gold and silver continue to track their current patterns. Gold continues to hold the uptrend on track with a move to $1,600 in the April futures. Silver in a downtrend on its way to $17.50 and below in the March futures.

One thing we have learned about markets is they break into three different patterns, spending most of the time consolidating. Both gold and silver are in consolidation; however, they are developing trends within their consolidation ranges. Gold in an uptrend and silver in a downtrend inside their ranges.

Eventually the metals will break out to a longer-term trend, as they sit now – gold higher and silver lower. There are obviously no guarantees, but the patterns are clear. We will stay short silver in the March futures and long gold based on April futures. When trading, watching price action and direction gives you the highest probability of success.

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.