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Silver breaks down, gold stays in consolidation

Commentaries & Views

Monday was an interesting day in the metals. Early, gold, silver and platinum looked like they were going to have an ugly day. All three were under heavy pressure, joining equities in some panic selling.

Gold fell below $1,800 before making a charge to close at $1,813; silver broke to $25.04 and is trading there this morning. Platinum traded down to support at $1,063 and is just above that this morning. The trends remained short, with silver and platinum in real danger of breakdowns.

Nothing has changed with gold, silver and platinum; we remain short gold and silver. While platinum is a short, we do not trade the metal because of the lack of liquidity. The big question: where do they go from here? Eventually, they will go much higher; however, until our signal changes, we expect lower.

As we know, timing markets is a fool’s game and trading is about capturing short-term moves. We are buying physical metals but from a trading standpoint, short is the correct side.

Patience, discipline, and money management always win the day. Let the map of the markets show you the way.

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.