Gold and Silver headed lower
Gold and Silver appear to be headed lower and there doesn’t appear to be anything that will slow the metals from another trend reversal. All the wishing and praying won’t make them rally to last weeks highs.
The highs made last Tuesday night were made on a move that was based on panic which is never the beginning of a move. Typically, blowoff tops or bottoms are the end of a move not the beginning. Last Tuesday’s move looked like the end which means gold is probably headed back to 1500 and Silver to 17.50 based on the futures markets.
Based on our algorithm we are still long however we are very close to changing to the short side which was very close based on Monday’s close. If the metals close lower today, we will reverse and get short which the charts and the patterns are indicating. The next move of size should be lower.