On Monday, gold got hammered and it looked ugly. This morning, or the overnight Gold trade was moving nicely higher until 1:00 am until the sellers showed up again, reversing fortunes and taking gold lower again. Silver sellers also continue to dominate pushing sliver lower.
The action for Gold is still relatively bullish and it is our expectations that 1310 – 1320 should hold and a rally back to 1350 should ensue. Obviously, there are no guarantees, but the pattern suggests gold is going higher and this is just a pullback to support.
We are looking to buy gold at the 1310-1320 level with expectations that 1400 is in play again. Of course, gold must break above 1350 and before that must hold support. But that is our expectation today based on the market footprint.
Silver is a different story altogether; the pattern is brutal, and Silver can’t seem to get out of its own way. 14.60 is a very key level and failure there means it could get ugly. If 14.60 fails, 14.20 comes into play. We are watching closely.