Gold and silver under pressure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Overnight and this morning, gold and silver are under pressure, with silver breaking through the key $25.00 level trading $24.80 as of 4:20 EST. We will now assume the $24.00 level is in play which was the low in mid-January.
There are no guarantees that the breakdown will continue; however, the pattern is the most bearish since last November. Gold looks to be headed lower as well. A break below $1,700 brings $1,600 into play. As silver breaks through, major support gold is not far behind.
When trading, it is important to remember that the patterns we trade can change at any time. As of today, there are no signs that these bearish patterns will change any time soon. However, we are prepared for everything knowing trends change.
What makes these patterns more bearish, with the FED printing money at a record pace, gold remains negative. Add the FED’s unwillingness to say there is inflation and you have a recipe for higher gold and silver prices. Yet they are not, makes you wonder…
Every Monday Night, Andy Hecht and I look at the markets Metals, Commodities and Stocks