Gold and Silver Churning
We have seen this movie before, Gold and Silver are churning around in consolidation as they try and decide which way they will go next. A case can be made to go either way but for now there is more evidence that the lean is to the upside.
The fact that the metals never gave us a sell signal based on our algorithms suggests they want to go higher. During Monday’s overnight trade we saw a spike higher, April gold to 1575 and March Silver to 1815 before both pulled back.
The path of least resistance once again looks to be higher; the algorithms remain long as do we. The key support to watch are 17.80 March Silver and 1545 April Gold. As long as they maintain those levels or higher, we will be playing the market to the long side. They can go either way as always, but the path of least resistance appears to be up.