As expected, Gold failed to hold the 1300 and closed Tuesday at 1296. Gold continues to trade in a range with a bias to the downside. Until gold can close above 1300 and then 1310 for a couple of days, rallies are meant to be sold.

Silver continues to trade as if it were in a coma searching for a lifeline to bring in new money buyers. There appears to be help on the way if Silver can hold the 1450 level. The slow dull drift has been painful with the lack of volume and movement.

Since making yearly highs in February, gold and silver have traded lower. Gold is down 6% and Silver 8% since the recent highs and other than a couple of burst or short covering rallies look to be headed lower.

This is the period you decide are you a trader or investor, traders will continue to sell rallies until further notice. Investors should turn those machines of knowing that they will find a bottom and eventually go higher. For investors the worst trade is to try and time the market.

Todd Horwitz
Chief Strategist