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Have metals bulls lost momentum?

Commentaries & Views

Selling in metals has accelerated after bulls stalled at $1,960 in after-hours trading yesterday. Silver has been the hardest hit, but it seems to have found support at $24.60 as of this writing.

Although oscillation around support and resistance level will occur, the "bullish benefit of the doubt" has evaporated. As of now, the medium-term path of least resistance in metals is likely lower for a test of the $1,920 - $1,915 area in gold.

Traders may be waiting for bounces to sell into or to enter short positions; a close of over $1,965 would change the outlook. Enthusiasts of physical metal, however, may embrace the medium-term downward pressure with anticipation of an opportunity to turn the same amount of fiat into more metal.

US stock indices are pointing to a higher open again this morning. The wedge highlighted in earlier pieces (updated below) seems to be on the cusp of breaking out. However, there may be some minor resistance here as bulls attempt to break out in earnest.

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.