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Gold, silver and platinum: ugly

Commentaries & Views

For metals, the scene has been and remains ugly. Every time they think there is a bottom, it’s a false read and these markets head lower. Rallies end quickly and the sellers take over and punish these markets. Other than gold, the metals are in a bear market, soon to be joined by gold.

Although many expect the metals to take off to the upside at any moment, they are constantly disappointed. The patterns are very clear: gold, silver and platinum are in downtrends and all rallies should be sold.

You can hope and wish markets higher; however, like all markets, they follow trends. Since peaking in mid-February, gold, silver and platinum are headed south. For now, the bottoms appear to be far away, Silver is on 11-year lows, with platinum on 15-plus-year lows. Gold is holding up the best, but if the current pattern holds, look for it to break hard. We remain short across the board.

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.