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Gold and silver under pressure

Commentaries & Views

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…

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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.