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Gold holds first test; silver and platinum weak

Commentaries & Views

Here we go again. Gold has found a crucial level it must hold, while silver and platinum failed at their resistance levels. Although the rallies in the metals have been strong, they appear to be over and now they are all at major levels. The next few days will tell the story on if they are in the next up leg or if the rallies were just short covering before they resume the downtrend.

May silver futures resistance is $14.90, and failure to break above would create a lower high, indicating that there is more selling to come. May platinum futures resistance is $747, and failure to take out that high would result in the downtrend continuing. Both are at key decision levels that will define the next moves.

After peaking Wednesday at $1,698, June gold finds itself under pressure and threatening to resume the downtrend. If the $1,698 level holds, that would be a lower high and a signal that gold is headed lower. We are uncomfortably long in gold, platinum and silver and will stay there until our signal changes.

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