Gold and Silver Breakdown
Thursday was one ugly day for the metals, both broke down through key support. The selling was fast and furious throughout the day as there were no buyers. Gold went through 1480 and tested our next level of 1460. Silver went through 17.50 support and closed at key support.
The breakdown was as we have scripted through all the reasoning why the metals should be higher. Yet here we are at major support levels in danger of breaking down further. If silver can’t hold the 16.95 -17.00 level or 16.50 is the next support level. Gold must hold 1460 level, or we can see 1440 as the next stop.
This morning both were higher but are already giving up the overnight rally. Gold is now flat, and Silver is slightly lower. There should be a dead cat bounce this morning or the metals could once again accelerate to the downside. We are still short and looking for lower prices although a small rally would be no surprise.