Gold, silver bulls: don't fret just yet
(Kitco News) -Thursday's sharp losses in the gold and silver markets are certainly unnerving to the precious metals bulls--especially the shorter-term futures bulls. However, it's important to keep in mind near-term price uptrends are still firmly in place on the daily bar charts for both metals. For the near-term uptrend in gold to be seriously jeopardized, prices would have to drop below solid chart support at $1,500. For silver's uptrend to be put in peril, prices would have to drop below $17.50. If those levels are breached, then gold and silver bulls can start to fret a bit.
Veteran traders know that no market's price goes straight up or down and that all price uptrends and downtrends contain "corrections." In fact, periodic significant downside corrections in price uptrends are a healthy element that suggests the uptrend can continue. A huge price spike with little to no downside correction suggests the big upside price move will likely be short-lived.