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The lion, gold and silver sleep tonight

Commentaries & Views

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.

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.