Gold closes below 1500   

Thursday saw gold and silver sell off, the selling was not panic, or fear induced it was simply failing from a resistance level. The trend has reversed and is now lower which indicates selling rallies that reach resistance.

Thursday’s sell off came exactly from where it should have, and it did not disappoint. The metals did close on support which is prompting a little rally this morning which should fail, 1510 should be the top of this rally if it makes it that far.

The close below 1500 gives confirmation that the probabilities that gold will test the recent lows of 1460. Our first target is 1440 but know gold is not going straight down. The simple fact that gold has made successive lower highs which should continue.

Todd Horwitz