Wednesday’s FED announcement brought a lot of action to the metals as they swung on both sides of unchanged. After being higher most of the day in the green, gold broke hard testing the 1480 and rallied to close on the high of the day.

Silver showed the same action as gold testing the 17.60 level before closing positive on the day. The big question here, are the metals in the process of reversing? The action has not totally turned bullish but certainly has become more neutral indicating they can move either way.

We remain short both Gold and Silver although not as committed as we were before. The fact that the metals are now consolidating and reversing the downtrend has tightened the trading range and now can break either way. The levels to watch in Gold are 1490-1510 December futures and 17.80-18.10 Silver.