Gold Spiking higher – What does it mean?
Om Tuesday gold and silver were once again under pressure. Both traded down considerably before a late day rally pared losses still closing lower on the day. The pressure is on the metals and they are in danger of breaking down.
This morning gold and silver are spiking higher which is nothing more than a dead cat bounce in an oversold market. There a bottom feeders trying to be first to be in and there is the short squeeze which happens in every oversold market.
Nothing has changed in the pattern or the footprints, the metals are in a downtrend and a one-day rally will not change the trend. Until proven otherwise, we will remain short expecting December gold to break through 1440 and December silver 16.50. Look for this rally to fail followed by lower prices.