The Gold and Silver bulls continue to insist the metals are going higher. The buyers continue to step in on pullbacks trying to convince themselves there is no risk. As per our headline yesterday, the metals should be headed lower based on the current pattern that exists.
From history we know a couple of things, markets typically will follow the footprint they leave and following the footprint gives you a higher probability of success. The footprints in metals suggest both gold and silver are headed lower. Of course, there are no guarantees.
Investors in equities and metals can buy and hold knowing that those markets go up and down but over time they work higher. Traders are looking for the short-term direction trying to take advantage of the intermediate trends and being on either side of the market. For now, we are short and will stay there until Silver closes over 18.00 and Gold over 1520.