Gold and Silver were under pressure on Monday after trying to rally early. The selling pressure became intense for a short period of time. The metals closed lower on Monday on or near there lows of the day.

This morning Gold and Silver are mixed near the unchanged level but should be headed lower. The key resistance levels remain in place at 1520 Gold and 17.80 Silver. The pattern points lower. The next support for Gold is 1480 and Silver 17.20 Silver.

The next two days markets should be quiet which can lead to bigger price movement in either direction. Tonight, starts Yom Kippur which runs through tomorrow. Expect this afternoon and tomorrow to be slow trading which can lead to exaggerated moves. Besides the Yom Kippur holiday plus the China trade news, Thursday could lead to crazy moves, the levels of support and resistance are solid.

Todd Horwitz
Chief Strategist