Gold making another attempt to rally

It seems like just a week ago that we were writing about gold and silver trying to reverse directions. Here we are once again the metals are attempting to change trend direction and go higher. Is the selling pressure over?

Obviously, there are no guarantees that the direction in gold and silver will change here, however the patterns are trying to change. Both are building ascending patterns into the key resistance levels, Gold 1490 based on February futures and Silver 17.20 based on March futures.

For now, we remain short and have added to our positions knowing that the metals could breakout to the upside. However, we need to see proof that the pattern has changed, the clues are there but price needs to prove it. Until further notice we are short and will remain there until price tells us to change.

 Todd Horwitz