Gold, silver take a plunge
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
We have been writing for weeks that gold and silver were at critical levels of support. These levels were must hold, or they would get flushed. Sure enough, on Monday, they both failed and dropped big. Gold fell almost $40.00 and silver nearly $1.00.
This morning the selling continues with gold down an additional 28.00 and silver .40. Once again, both have come to another decision point. The levels are: gold $1,800 December futures and $23.00 December silver. A violation of those levels could create the same action with a hard fast sell-off.
Obviously, we are still holding our short positions and assume those levels will be violated. However, after this morning’s early push down to $1,803 gold and $23.08 silver, a dead cat bounce would not be a surprise. We expect a small bounce but will add to our shorts at 23.5 silver and $1,840 gold.
The next major targets we are looking for are: gold $1,750 and $22.5 silver. The trend is lower and there is no expectation that the bottoms are in. We expect the selling to continue and sell-offs to be hard and fast.
Futures and Commodities with Andy Hecht and Technomental: Our webinar on Saturday was fantastic, here is the recording