Gold’s instant replay
Monday’s action was about as slow a day in the metals as we have seen for months. The action was nonexistent as gold and Silver hovered near unchanged. This pattern is typical when a market is getting ready to make a move in one direction or the other, this appears to be the case for metals.
For the past couple of months, the metals have found support at the bottom end and resistance at the top. The last week gold and silver have made a move that could be considered bullish; however, they have not been able to breakout to the upside.
The correct side of the metals remains the short side. The metals are higher this morning giving hope to the bulls. If this move fails again new lows are coming, the recent buyers will be panicking out and sellers with be back. Like horse racing these markets can go either way, for now we stay short.