Gold, silver and platinum prices spike, then fall apart
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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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