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Gold stalls; platinum and silver getting ready to move big

Commentaries & Views

The wild trade continues mostly because of the lack of liquidity in most markets. Gold is in wide sweeping congestion in a bull market. However, there appears to be a seller or a forced liquidation in the yellow metal. There have been periods the last couple of days where gold has sold off hard in a few minutes only to bounce, smelling of a forced sale into an illiquid market.

Silver and platinum are almost mirroring each other. Both appear to be weak and have not had the same bullish action as gold. Silver and platinum are winding in a range that is tightening, setting up a move that will be 10%-plus in either direction. This type of move is typical when a market coils into such a tight pattern, creating a big move.

Based on our algorithm and positions, the move should be higher as we remain long across the board. Of course, the move could be lower, but until something changes, we will stay long the metals and look for the move to be higher.

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