Gold huffs and puffs but can’t get through resistance
The metals continue to fail to get through the key resistance levels. Like the big bad wolf, the metals continue to huff and puff but can’t blow down the resistance wall. Eventually gold and silver will breakout to the upside but for now it looks week.
For weeks gold and silver have tried to breakout to the upside, each time they have failed. The failure is a bearish sign and should be headed lower. We all know that markets follow footprints and move in both direction with a gradual bias to the upside over time.
Unfortunately for the gold bulls this still isn’t the right time for the metals to breakout to the upside. With each day of failure, the odds increase in the possibility of a much bigger sell off. Until Gold can close over 1490 February futures and Silver above 1730 March futures, we will stay short.