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Gold, silver and platinum hold support; what's next?

Commentaries & Views

The action in gold, silver and platinum has been ugly with all three drifting lower. On Wednesday, they all held key support levels and are bouncing this morning. Gold went through $1,600 in the June futures, silver $14 in the May futures and are both above those key levels. Platinum came down to $700 in the July futures but never violated that level.

As we wrote the other day, the metals look weak and that hasn’t changed. The fact that they were able to hold key levels gives the bulls some hope but doesn’t change the pressure they are under. Other than holding support, nothing about the metals looks good.

At this point, we are still long in all three and will not be reversing until there is proof that the trend has changed. We only adjust trades when our algorithm changes, and for now it says to be long. If there is a directional trade, it won’t be until tomorrow morning. As bad as they look, we will hold but not add.

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.