After Wednesday’s big selloff in the metals, they tried to rally Thursday and are failing this morning; the metals are threatening to take out Wednesday’s low. There is no doubt that the trend is confirmed lower and now we could see significantly lower prices.
As you know, we do not predict markets but make all decisions on price with price action. The recent action in gold and silver is become bearish, bringing in play some lows we have not seen for a while. For December gold, if 1920 does not hold support, 1850 comes into play. September silver is at a critical level; 26.5 is a must-hold level or 25 comes in the play.
Platinum also joined the ugly party and is inches away from reversing; however, we will stay long uncomfortably until it does. We are short gold and silver and are looking for the downtrend to continue. We know that markets don’t announce themselves will be prepared to reverse but can’t really make the case with the current price action.
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