Are Gold and Silver breaking down?
All the excitement of Gold and Silver breaking out to the upside has dissipated with Tuesdays 25.00 sell off. All those clamoring for the next bull run have been runover once again. Those who traded based on news flow, are wondering what just ran over them.
We stood fast on the technicals maintaining our pricing model which suggested 1520 was resistance in Gold and 18.10 in Silver. In one day both metals broke down to support and are now in danger of breaking down.
The next few days will tell the story for the next big moves in both gold and silver. As we said at the top, we are staying short however with the metals now back on support a rally would be no surprise. Our overall view is a breakdown to 1460-1440 level is still in play and we will stay short until proven wrong.