Gold and Silver remain in a consolidation pattern and are attempting to breakout to the upside from here. The overall trend remains lower, indicating the metals have more room to go on the downside. This is the second time in the last few weeks that Gold and Silver are trying to breakout to the upside.
In the world of trading, consolidation is known as the greatest time of uncertainty. The strong hands continue to rotate between the buyers and sellers, right now it appears the strong hands are trying to push higher. We know that markets never announce their intentions, and anything can happen form here.
Based on the longer-term trend, we will play this rally to fail and the downtrend to continue. The action over the next couple of days will tell the story, whether this rally attempt is real, or gold resumes the trend down. Until there is proof that the selloff is over, we are short and sellers of rallies.