Gold and Silver can’t find buyers

Gold and Silver remain under pressure and are possibly breaking down through another key support level. 1460 February Gold and 1670 March Silver appears to be a key level. Both metals look in danger of falling below those levels which will bring new sellers to the party once again.

The patterns are ugly, although the metals are slightly higher this morning, we will be looking to find levels to sell. In other words, all rallies should be sold until further notice. This bearish pattern has been in place for a couple of months and can last longer than any of us think they can.

The key here is not to try and guess the bottoms but to let the markets play out until we have a reason to reverse. We remain short and look to add until the time arises to reverse. That can be anytime, but we are at least a few days away from a change no matter what happens today.

Todd Horwitz