Gold and silver are seeing very turbulent times trading in wide ranges and deciding which way to go from here after last Tuesday’s beat down. The action is bearish, and we are short at the moment expecting a deeper pullback.
The recent action has been higher, which is to be expected after a massive selloff. However, this action is considered bearish until proven otherwise. There is no doubt that there will be sharp rallies as buyers step in. We expect rallies for now and we will sell into them, knowing that the pattern just a lower trend.
As we have written many times, markets trade in various patterns. Right now, gold and silver are in consolidation, which will lead to a breakout to the trend that is lower right now. That can change at any time. We could be wrong and forced to reverse, which is not a problem when you are trading mechanically without opinion.
Generally, we are always long gold and silver as investments. But as traders, we do trade to the short side, which is our current position. We are still long platinum short, gold short, silver. The volatile action should continue for a few days until the new trend is confirmed.
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