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Gold, silver and platinum prices spike, then fall apart

Commentaries & Views

This morning at about 5 a.m. EDT, gold, silver and platinum and copper spiked. Then 10 minutes later, they collapsed. August gold rallied to $1,750, September silver $18.07 and October platinum $840, and now are all near the lows of the day. Silver is still higher while gold and platinum have turned negative on the day.

Not much has changed in gold, which reached resistance this morning at $1,750 and is now failing. The key levels remain $1,725 support and $1,750 resistance. The pattern is still ugly. Although we are still long, this morning’s spike was more bearish than bullish. Obviously, we would love to see a breakout higher. There is a big move coming and the odds favor lower; however, we will stay long until our signal changes.

Silver is in a similar pattern and must hold $17.75 in the September futures. We are long in silver as well but have the same concerns. The pattern is weak, and the next move has a higher probability of being down. We are short October platinum, and the pattern suggest the next support is $800 in the October futures.

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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.