Make Kitco Your Homepage

It is a trifecta, gold, silver and platinum breakdown

Commentaries & Views

We saw a trifecta in metals with gold, silver and platinum all breaking down on Wednesday. Silver has confirmed the breakdown from Tuesday while gold and platinum just broke support. Remember, these patterns can change at any time, but for now, lower they go.

December gold futures have met our first objective to the downside, which now brings into play $1,800 December gold. We are not predicting this; that is what the current price action is showing. Until proven otherwise, we will be sellers of rallies.

January platinum is now tracking $810 as the next key level. The pattern is weak, indicating there is more room on the downside. Platinum's selloffs have been on light volume, which means that panic selling has not yet appeared.

For the moment, December silver is the weakest of them all and is now tracking $21 and then $20. We will look for opportunities to add to our short positions until the pattern shows proof that it is changing. No one knows when that might occur, we will follow the price action as is.

For the next day or two, it would be no surprise to see either a dead cat bounce or a short-covering rally. The rally, when it comes, will be vicious and look so good that you'll wonder why you aren't long. Bear market rallies are meant to be sold because they are born out of fear. Expect the rally, which is just another selling opportunity.

We are now offering a comprehensive commodity report that complements our other services. The Technomental Commodity Report comes out on Wednesday evenings and provides comprehensive fundamental and technical coverage of most commodities that trade on the futures markets in the US and UK, as well as stocks, bonds, and digital currencies.  There is a summary report on Friday after the markets close, and robust quarterly reports on each of the six commodity sectors and a general overview that recaps the past three months and offers projections and suggestions for the next quarter. Andy Hecht, the author of the report, has been a commodity trader since the early 1980s and has vast experience in markets across all asset classes.

Sign up here:
Bubba Trading Technomental Report  

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.