The lion, gold and silver sleep tonight
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The metals markets cannot get much quieter; once again, gold failed to breakout. Gold’s constant failure at resistance making lower highs is very bearish. The overall action is like the Lion King, The Lion Sleeps Tonight.
Silver continues to drift lower without energy and has broken out to the downside, which brings our next target of $24 into play. Like gold, silver has been painfully slow, but the market gets more bearish every day. The action is weak, with little interest right now.
Platinum is in the same predicament, down, slow and less interest than an already slow market. The $1,050 level has managed to hold, which could indicate some bottoming action. A break below $1,050 brings $950-$1,000 into play.
As the markets sleep, expect to see sharp rallies to sell; resistance is solid. This does not mean they will go down forever; the pattern can change without notice. We will continue to be short futures with the trend while buying physical and holding
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.