Gold Consolidating

Gold continues to prep itself for another leg down. The trend is lower and for the last week gold has be churning between 1480-1500 December futures. The pattern suggests that lower prices are coming and 1500 is solid resistance.

Silver is in basically the same pattern as gold and should start to head lower as well. The overall picture for Gold and Silver is bleak for now, buyers have not been successful in breaking through resistances levels. This type of action suggests that the metals still have room on the downside, which is also the path of least resistance.

Remember when we talk about levels and where markets stand that is only for the time frames we are watching. There is no doubt that the metal will eventually have a big rally again some day and investors should hold. Traders should be selling the 1500 level in Gold and 17.90 Silver, these levels are based on December futures.

Todd Horwitz