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Gold fails to take out resistance

Todd 'Bubba' Horwitz

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

What a fine mess we have now in gold; the failure to take out resistance on Thursday indicates the selling should resume. Obviously, there are no guarantees that gold won't rally today; however, based on the price action, there is a higher probability of a bigger selloff.

Silver is stronger than gold but also failed to take out its resistance. This morning Silver is under some pressure and should suffer the same fate as gold. The model tells us the selling is just beginning, which should take silver lower.

On the other hand, Platinum made a new 5-year high on Thursday. The trend remains solidly higher and now in consolidation. The key levels to watch in April Platinum are 1075 support, 1140 resistance. With the trend higher, we will look to buy at support levels.

Given the mixed action in metals, we will be passive on selling more gold and silver until the recent action is confirmed. Nothing is ever guaranteed when trading; we can only use price action to be on the right side of probability. After all, the markets are a game of probability.

Here is the recording of Options Training Session 2 – The Next Step. We have also included a registration link for session 3 on Saturday Jan. 23 at noon est.

2021-01-16 Recording: Options Training Session 2

2021-01-16 Options Training Session 3 Register here

By Todd 'Bubba' Horwitz

Contributing to kitco.com

Contact Bubba@bubbatrading.com
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.